Bye, 2020! There are certainly things we won’t miss about this past year. Looking back, however, one of the things we are thankful for is the real estate boom. In many parts of Florida and throughout the country, the real estate market has been hot!
That’s been due to record low mortgage rates, but inventory is lower than what is needed to keep up with demand. This means prices are moving up sharply, and many buyers are willing to offer more than the asking price.
This sounds like a great thing for sellers, but there’s a step that can be forgotten until it’s too late – *dun dun dun* - the appraisal.
Unless you’re paying in cash, the bank needs to ensure that they’re not giving too high of a loan for the property. Just because a buyer really wants to buy it for $15,000 more than asking doesn't mean the bank does.
Ways to Avoid a Low Appraisal
1. Don’t Be Zillowed - Price the home correctly. Avoid the urge to overprice because of the market. Find a comfortable price that has some room for negotiation - up or down.
2. Consider Upgrades – According to a local appraiser, the usual upgrades are always great ways to increase your appraisal value:
3. Prepare the Home for Occupancy – A home that’s ready to live in will likely earn a higher appraisal. Touch up walls and base boards with paint, pressure wash the exterior of the home and driveway, declutter every room, mow the lawn, and finish any incomplete projects.
“I Did All That, but My Appraisal Was Still Low! What Now?!”
Receiving a low appraisal can be stressful for the seller and buyer. The buyer thinks they are going to get a better deal, but they might actually lose the deal by staying with the original appraisal. The seller is not happy since they believe their property is worth more. So, how do you save the sale?
Our final piece of advice when dealing with an appraisal is to relax and let the system work. It’s in place to make sure everyone has a safe transaction.
For any additional questions about appraisals and staging, please call any of our offices to speak to our team.
It’s October, season of carving pumpkins and munching on candy corn. However, there’s something lurking just around the corner or hiding in the front yard creeping up on your customer, and if your customers are not careful – these monsters can jump out and KILL YOUR NEXT DEAL!
To help ensure your customers don’t unwittingly cast themselves as the victims in their own horror movie this season, check out the tips below on some of the biggest KILLERS of a real estate transaction!
After signing the contract for their new home, but before closing, some customers just get into a spending mood! It may be tempting to use a new line of credit to fill the new house with furniture or purchase a shiny new SUV for the driveway, but these transactions can QUICKLY change your lender’s opinion about your credit-worthiness and cause your deal to go down the drain!
Some homes look great on the outside and even through the buying process, only for the future homeowners to find out the home has not been properly upgraded throughout the years and is, instead, a mishmash of a lot of parts like Frankenstein’s monster. That home may not pass inspection, and when that happens, the sale is gone. Don’t let your buyers be sad. It’s a good thing to keep their family safe from plumbing, foundation, or electrical issues... as Frankie says – FIRE BAD.
A surprisingly common issue when someone is selling their home is that their legal spouse has gone as invisible as Claude Raine. When people move away from each other without filing the correct legal documents, they may forget that technically BOTH parties still own the home, and there’s been instances where the former spouse cannot be found in time – bringing the closing to a screeching halt.
Imagine getting excited about your new home, only to find the solar panels that you thought were a nice addition come with a $20,000 lien on the property. Just like Dracula – that sucks! Make sure you ask your title company for a comprehensive title search so that these kinds of liens don’t suck the life out of your customers' bank accounts!
As you can see, it may seem like there’s danger lurking around every corner, but with a little bit of preparation - and choosing a title company backed with the power of Florida Agency Network - you can help your customers avoid turning their experience into a horror film!