Thursday, January 23, 2014

Understanding the Appraisal Process in the Fast Paced DFW Real Estate Market

How Homes are Valued

Homes are valued a lot like everything else: They are worth what people will pay for them. The Maybach Exelero, the most expensive car in the world, sells for $8 million because that's what people will pay for it. By the same token, you can ask for $8 million for your Hyundai, Ford or Chrysler, but don't count on getting it – you'll get what the market says it's worth.
So, how do we know what a willing buyer will spend for a house? Although we may never be certain, by looking at the recent past, we can come up with a pretty good idea. This is why the market value of a house is based on sold homes that are comparable in various ways.
In other words, it doesn't matter what amount Tom, the next-door neighbor, lists his house for. The only thing that matters is what Jessica, your former neighbor, got for her house. List prices are fantasies while sold prices are reality.
Determining an accurate asking price for your home is vital, and the best way to find that price is by having the home professionally appraised. The second best way is to ask a real estate agent for a comparative market analysis. While both the appraiser and the real estate agent use the prices of sold homes as a basis, the appraisal process is a bit more in-depth.

The Appraiser

Licensed appraisers aren't house experts, but they are analysts, able to pull together myriad facts and statistics to arrive at a home's value.
To avoid a conflict of interest, most lenders adhere to the Home Valuation Code of Conduct (HVCC) and use the services of an appraisal management company.

The First Step in the Appraisal Process

Shortly after you've accepted an offer to purchase, you'll receive a call from the appraiser to set up an appointment to see the home. The time he or she spends inspecting the home varies, depending on the appraiser, but plan on it taking at least 30 minutes.
The appraiser makes note of the floor plan and any improvements, and takes measurements of the exterior of the home to determine the square footage.

Step Two

The appraiser uses statistics from the multiple listing service, public records, or a combination of both to find recently closed sales that are similar in age, size, location and features to your home. Typically, the appraiser relies on sales within the last 90 days, but may go back as far as six months. She will also use homes within a 1-mile radius of yours.

The Final Steps

The final steps of the appraisal involve comparing your house, which the appraiser calls the "subject," to the comparable homes. She'll use a list of criteria that includes the age of the homes, size, number of bedrooms and bathrooms, location and any improvements made to the homes.
She'll add or subtract value from your home depending on how it stacks up to the comparable houses until she arrives at the market value of your home.

What to Do if You Disagree With the Appraisal

An appraisal obtained by the lender is paid for by, and therefore belongs to, the buyer. So the lender won't send you, as the seller, a copy. It is up to the buyer to supply you with a copy if he or she is willing.
That said, if the appraised value is determined to be lower than what the buyer has agreed to pay, the lender will typically not lend on the property and the buyer and seller have some decisions to make.
The buyer can come up with a larger down payment (which brings down the amount of money he needs to borrow). Most buyers think long and hard about this option – nobody wants to overpay for a house.
The seller and the buyer can agree to split the amount that is over the appraised value, with the buyer bringing half the cash to the deal and the seller lowering the price of the home to meet his half of the deal.
Another option, and the one most commonly used, is that the seller lowers the price of the house to meet the appraiser's evaluation.
Finally, the seller can simply walk away from the deal.
Before any of these steps are taken, however, the buyer and the seller should review the appraisal to ensure that the appraiser used accurate information in his determination. Appraisers are human and do make mistakes. If errors are found, the buyer can notify the lender and ask for another appraisal.

Ready to Sell? We'd Love to Help! 


We specialize in getting our sellers top dollar.  Here are a few of things we do for our clients:

  • Professional High Definition Photography 
  • Virtual Tours
  • Property Websites
  • Home is marketed on over 350 local and national websites
  • Showcase Listing on Realtor.com
  • Open Houses
  • Pricing and marketing strategies to get top dollar
  • Over $1 Billion sold in 2013

Wondering what your home is REALLY worth in Today's market? 

visit www.RaymondEdler.com/sell for a free market analysis



Call The #1 OFFICE IN DFW- Keller Williams Realty

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Serving North Dallas, Carrollton, Garland, Richardson, Plano, Allen, McKinney, Frisco, The Colony, Lewisville, Flower Mound, Little Elm and Prosper

Painting to Sell - Raymond Edler Home Team 214-552-2091

Paint to Sell: Painting Tips to Ensure a Quick Home Sale

No matter how much you rearrange or decorate a room, nothing affects appearance like a fresh coat of paint. When you enter a house, your eye may be drawn to little decorative touches, but all the staging in the world will fall flat if your paint is drab, dirty, or goes against the potential buyer's taste. Considering that a gallon of paint is only about $25, it's also an inexpensive way to give your home a makeover.

Choosing Colors to Appeal to Homebuyers

Using colors that make the buyer feel "at home" will help you sell your home more quickly. You want them to look at each room and be able to literally see themselves and their belongings fitting inside your walls. Inspire a feeling of peace and relaxation, and part of the sale is already done!
Neutrals and soft colors create a soothing, calm atmosphere. Homebuyers can more easily visualize the paint colors they want when other colors aren't bombarding them at every glance.
Avoid bold, vibrant or dark colors. Even pure white can prove overwhelming. Stay away from trendy colors no matter how good they look to you.
Keep in mind color psychology. Not only do certain colors calm you, but the shade can also affect the room itself. Light colors make a space appear larger. Dark colors, on the other hand, make the room feel smaller. Of course, sometimes a darker color is good if you want a certain effect. A cozy den with a darker color and a bright, cheery kitchen with a lighter color may work best to highlight each room's appeal.

Neutral Shades

Even with neutrals, you still have a variety of colors to choose from. Off-white is a popular, all-purpose color, but it's not the only one. Beige, tan, eggshell and ecru are other colors that work well with almost any style. But your choices range even further: pale shades of blue, green, yellow and gray, for instance, can blend with the house and complement the room. Aim for colors that don't overpower the room or furnishings. Keep the color variations to a minimum to lend a sense of continuity to the house. If every room is a different color, it can prove overwhelming. It's much better to pick two or three colors to use throughout the house.

Painting Tips

Take the time to paint properly. Mask off areas that will be left unpainted. Throw down floor and furniture coverings to ensure you don't create damage during the process. Most importantly, prep the wall properly.
You may wish to spread a primer first to block bold colors. If the walls don't require color or stain blocking, sanding the walls slightly or washing with a solution of trisodium phosphate are other options. Both sanding and washing with TSP will remove dirt, oils and other contaminants that prevent the color from adhering well and looking good.
While you paint, take time and care to cut in the corners and avoid drips. Aim for the best paint job of your life – it will be worth it when the buyers sign on the dotted line!
If you can't afford to repaint your entire house, concentrate on a few select areas. The first room the buyer enters is the place to start – remember, first impressions count! Consider painting cupboards, trim and doors along with key rooms. Let your instincts guide you. Look around at other homes for ideas. If your home has a "parade of homes" that local builders showcase, you can glean a lot of tips in a short amount of time.
With a minimum investment, a little time and elbow grease, it shouldn't take long for you to have your home ready for its next owner.

Ready to Sell? We'd Love to Help!

We specialize in getting our clients the most for their homes.  Call us for color specifics, home staging tips, market analysis.  Here are a few of things we do for our clients:

  • Professional High Definition Photography 
  • Virtual Tours
  • Property Websites
  • Home is marketed on over 350 local and national websites
  • Showcase Listing on Realtor.com
  • Open Houses
  • Pricing and marketing strategies to get top dollar

Wondering what your home is really worth in Today's market? 

visit www.RaymondEdler.com/sell for a free market analysis

www.RaymondEdler.com

214-552-2091

Call The #1 OFFICE IN DFW- Keller Williams Realty


Serving North Dallas, Carrollton, Garland, Richardson, Plano, Allen, McKinney, Frisco, The Colony, Lewisville, Flower Mound, Little Elm and Prosper

Wednesday, January 8, 2014

Gorgeous Single Story in Bridlewood 3 Bedroom Plus Study Larger Lot

LIGHT & BRIGHT SINGLE STORY in Bridlewood golf community on nearly quarter acre corner lot*Split Bdrm floorplan w. 3 Bdrms+Study w.French doors*Cheery island Kitchen opens to Family Rm w.blt-ins&see thru fireplace to Sun Room*XL Master Suite w.split vanities&jetted tub*Crown molding,surround sound wiring,art niches&windows galore*Lg Bkyd w.extended concrete&flagstone patio*Stairs in Garage lead to attic*Immaculate&shows great
 


To speak with us directly about this home or schedule a showing, call 972-767-9470

Call The #1 OFFICE IN DFW- Keller Williams Realty

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Serving FORT WORTH, KELLER, North Lake, Grapevine, Frisco, The Colony, Lewisville, Flower Mound, Little Elm, Denton and Prosper