Appraisal News & Commentary

Real Estate Contract Seller Mistakes Part I

admin — Mon, 19 May 2008 17:09:24 +0000

Top ten seller mistakes when it comes to real estate contracts:

1). They accept more than one contract and get sued for non performance.

2). They accept an offer from home buyers who have given them a sob story to get the home seller to lower the price of the home. They also neglect to get a real estate appraisal or check current comparables which will inform them of house price appreciation.

3). They accept an offer from home buyers that do not qualify for the loan. They waste their time thinking that they are going to closing and have taken steps to move out, only to find out shortly before closing, at or after closing that they are NOT Closing. If the contract is not well written, the seller may have trouble getting out of the contract. In which case they may have trouble relisting the property in the multiple listing service (mls) and obtaining another offer.

4) Not read contract clearly and had no idea that they would get less money at closing, no money at closing or owe money at closing.

5). Sellers signed a contract that they did not have a clear understanding that they were paying for they new home buyers closing costs, home warentee, home inspection, termite, mold and radon inspection, first three months of mortgage and lawn service for the first year.

6).Sellers neglected to use the seller disclosure form. This is form required by law for real estate in most states. It is an opportunity for the home seller to state what they know is wrong with the property. If the seller neglects to tell the home buyer what is wrong with the property they may be liable to make repairs after the sale. In extreme cases they may be forced to purchase their home back and pay damages.

7). The seller has agreed to for sale by owner finance. The seller has the brilliant idea of selling the home and keeping the profit of the interest rate for themseles. Not a bad idea, unless the buyer does not have a job, credit, income or assets, or has provided a significant enough deposit to file a case against the buyer.- You will start to see more of these cases, as fewer people qualify for loans. Home sellers are taking matters into their own hands.

8). Seller neglected to disclose that their was water damage or other hazard and the buyer wants out of the contract.

9). Seller does not have money to close and is sued for non performance.

10). Seller misrepresents facts about the real estate for sale or school district and is sued for damages.

Their are top Realtors who are available to provide expert real estate help and guide you through the process.

It is very challenging for a real estate broker to get everything in the transaction correct, how is a home seller going to avoid mistakes with a real estate contract if they have no prior experience.

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I Have Some Real Concerns About The Copper Mountain Real Estate Market

admin — Mon, 19 May 2008 16:02:15 +0000

Just a month ago, I wrote a post called The Scoop on real estate in Copper Mountain Colorado. In that post I was pretty upbeat about the market, despite terrible reports from other parts of the country for more than a year now. I did express some concerns for the middle part of the price ranges, and I talked about how many Sellers have been way too optimistic, and although I didn’t use the it, greedy might have been a good word to use.

A couple of days ago, I looked at the number of sales for this year so far, and compared them to the same time last year. What I found was that sales for the first 3 1/2 months at Copper Mountain were down by 45% from the same period a year ago! That is a huge decrease, and it is double the decrease of 22% in the rest of Summit County as a whole. Projecting that decrease through the rest of 2008, we could end up with only 58 sales this year, compared to 115 for 2007. What I have seen is not so much that there are fewer Buyers, but that there are fewer Buyers willing to pay 38% more than a similar property sold for a year ago. We have reached a point of price resistance, and that seems to be $550 per square foot. The only newer, two bedroom condos at Copper that have sold for more than $500,000 are in Passage Point, where they are bigger, and Copper One Lodge, which is just steps from the lifts. In Tucker Mountain Lodge and Taylor’s Crossing, many Sellers have tried, but to date, none has been successful (except for one extra large, two bedroom, lock-off condo that sold for $526 a square foot).

Realtors are often accused of creating overheated markets by suggesting prices that are too high to the Sellers they are working with. I really have to take issue with that, as I have seen both good and bad markets, and consider my job to be interpreting the market to Sellers and Buyers; not creating it out of whole cloth. I look at past sales, then the trend in the market at that time, and offer up my suggestion to the Seller. Sometimes it is accepted and often it is not. Sellers almost always think their home or condo is worth more than I think. I am much less emotional about it and am able to look at very concrete things like square footage, upgrades or lack thereof, and amenities.

My interpretation of the market today (and it could change tomorrow!) is that Sellers should be pricing at or very near similar units that have sold within the last six months. A condo with ski slope views is not comparable to one with highway views, but as long as location is taken in to account, the condos themselves are all pretty similar in buildings of the same age. Buyers are very cautious, asking for past sales and looking hard for value. Of course, unless the purchase is cash, an appraisal will be required by the lender. Because of the recent mortgage mess, I find that loan officers no longer know who the appraiser is and therefore have no control over how the appraisal is done. Appraisals are ordered by an entirely separate department and it is intentionally kept at arms length. With no pressure exerted by loan officers, Sellers, Buyers or Realtors, appraisals are going to be based very firmly on past sales. If the appraiser doesn’t find the value, the Buyer won’t either. And if I don’t find the value, a Buyer will not either.

The sales numbers I am seeing at Copper remind me a lot of the market of 2001 and 2002, when condos were selling for 7 to 15% less than people bought them for just a year or two prior, when they were brand new. The big difference is that today we don’t have the inventory levels we had then. Instead of 160 units on the market, we have about 58, and in order to have a declining market, you need much more supply than there is demand. We have a little more supply, but not the three year inventory we had back then. In the first half of 2002, the only way to sell a condo at Copper Mountain was to sell for much less than Sellers wanted to get. When you are standing at the end of a long line of condos for sale, the only way to move to the beginning of the line is have the lowest price. It is not that bad today, even though the sales numbers are similar at this point in the year. We don’t have the speculators in the market now that we did then. We do have a few sellers but for the most part, second home owners can afford to hold onto their properties until prices improve again. It is not as if they have been transfered to another city and have another home to buy.

In the last downturn at Copper, there were some Realtors who thought they could artificially prop up the market by arbitrarily pricing everything high so that Buyers had no choice but to pay the prices. Of course, it didn’t work, and it won’t again. Sellers who want to sell will reduce prices until someone sees the value and buys it. No matter how bad the economy, there are always people on the lookout for a bargain. My advice to Sellers is; if you want to sell your Copper Mountain condo, price it to sell. If you are interested only in getting a premium price for it, take it off the market if it hasn’t improved by July and put it back on when the market starts heading up again. Buyers, get out there and buy, because the plateau in prices is a great time to get your Copper condo, and perhaps you can find that deal you are looking for.

Anatomy Of A Domain Name Sales Scam.

admin — Mon, 19 May 2008 14:36:37 +0000

Stumble It!

So the other day I get this email:

—–
From: Harrison [management@phreaker.net]
Hello,
We’ve have visited several online auctions. We are very interested in your domain name.
Just email me your price and we will consider it.
Of course, domain reselling is not a main direction of our business (we develop software). But domain aftermarket is hot now, so we are always interested in domain names.
Looking forward to do business with you.

Regards,
Anthony Harrison
COO
PDS Consulting
Wow I think to myself, I just registered this domain. This will turn a tidy profit for little actual work.
In the art of scamming, this is considered the introduction. While little more than a precursor to the bait, this helps to bring the mark/target (me) into the scam.
So I reply:

—–
The domain in question is currently listed for sale at Sedo
Per their user agreement
Please kindly read the topic: which I have cut and pasted here.
Sedo works hard to provide the Internet?s #1 domain marketplace. Soliciting domain sales outside of the Sedo marketplace for the purpose of circumventing fees that would otherwise be due to Sedo is strictly prohibited. This includes using user contact information obtained from Sedo or using any of Sedo’s services or features to offer to sell any listed domains outside of the Sedo marketplace or sending unsolicited commercial email offers to bidders that have bid on your domains, or any domains listed on the Sedo marketplace.

As you can clearly see, for all domains listed at Sedo that I haven’t already been in negotiation with a buyer before posting them for sale at Sedo’s site, offers and sales are required to be handled through Sedo
Please make an offer via the domain purchasing utilities at Sedo.
I?m certain you can understand my reluctance to offer anything that might constitute a business arrangement outside of Sedo for this domain.

Thank you,
Kevin Oedekoven
If this was a legitimate buyer, I would have expected negotiations to proceed through Sedo, or at the very least (for a complete novice) an email asking for details on Sedo and a request on how to proceed.
Instead of following my request (not a good thing if you’re really interested in making a sale) the response that follows doesn’t even follow simple bait and hook rules of a well articulated scam, rather its both the bait and the hook to this scheme.

—–
Kevin,

Can you accept 12000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals.
Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too.
But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this posting from archive:
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% - 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
Wow, bait (12000 USD) and hook (go here to get an appraisal - which costs money) in one punch.
And bad form to boot.
Apparently this guy doesn’t understand my views on appraisals (see articles above this one.)
So I ask myself, Why would an appraisal need to be paid for? And why not use Sedo?
The only answer possible is that somehow the individual I’m dealing with likely gets a cut of the “appraisal” (note the quotes) proceeds.
And that’s exactly how this scam works.
After the appraisal is paid for, the “buyer” (again with the quotes) will at best quietly go away. Or he might scam you into getting appraisals on other domains in your portfolio before slipping back into the anonymity of the net.
So this is obviously a scam, how do I make this guy go away?

—–
Please direct all domain name related requests through Sedo.

Thank you,
Kevin
End of story.

Are You Down With Your Financial Worries? Be An Property Appraiser

admin — Mon, 19 May 2008 14:33:52 +0000

If a person will find himself in a financial mess, there are four options that he has to face. He can either let everything take its course, he can find a job, he can look for other ways to borrow money or ask for financial grants from the government and his last option is to have a business of his own. Of all four, the least choice would be having a business and everybody knows the reason why. But you see, it doesn’t mean that you need a lot of money for capitalization. Why, there are lots of businesses out there that require only little capital or none at all. Like for example, real estate appraisal. You can be a real estate appraiser without much money involved. You can learn real estate appraiser courses in your own home and that would only mean lesser expenses. Once you’re in the battlefield, you only need a few extra change for expenses. Why not take a look at this opportunity. Maybe this is the answer to your financial worries, right? Who knows, right?

Reverse Mortgages Defined

admin — Mon, 19 May 2008 13:10:50 +0000

Reverse Mortgages Defined:

Reverse Mortgage Program

If you are a older american at age sixty-two or older and in need of some badly needed money for householdexpenses, you might want to consider a reverse mortgage.
Reverse mortgages are taken out mainly by older americans eager to tap the unused equity in their homes. These home-owners, who are money-poor but home -rich with a small mortgage or none at all, put up their house as collateral, receiving regular payments from the banker for a fixed term or for the rest of their life. Reverse mortgages are available to any homeowner over the age of sixty-two whose mortgage is completely or nearly paid off. If the house is jointly owned, both owners must be at least sixty-two. Reverse mortgages are a new type of mortgage designed specifically to be appealing to older homeowners. In regular mortgages, the homeowner pays the banker.

Reverse mortgages are rising-amount owed loans. The interest is added to the principal loan balance each month, because it is not paid on a current basis. Reverse mortgages are calculated from the value of your house . You can receive the money in one lump sum at the beginning of the mortgage’s term, or you can draw upon a line of credit, withdrawing money as you need it.

Reverse Mortgages are gaining in popularity as seniors living on fixed incomes are facing the financial challenges of rising fees for health care, energy, and other daily expenses. According to an AARP survey, the majority of older Americans wish to live independently in their own homes for as long as possible. Reverse mortgages are a new and complicated financial product that are being offered at an increasing rate to the nation’s seniors. With a growing number of products offering a variety of rate structures and features, it is increasingly difficult for borrowers to determine which reverse mortgage, if any, is a suitable financial option for their situation. Reverse mortgages are generally “nonrecourse” loans, which means that in seeking repayment the banker does not have recourse to anything other than your house . Not your income, your other assets, or your heirs’.

Reverse mortgages are expected to become more attractive. Reverse mortgages are truly like diamonds in the rough. At first glance, they may not look like much. Reverse Mortgages are a very specific loan for a certain group of people. They are not for everyone, nor were they designed that way, they are there to help those who are having trouble with their mortgage payments and don’t want to move.

Loan Fees

Loan fees can vary considerably depending on the reverse mortgage selected, as they may not include the same types of loan fees. The fees associated with getting a reverse mortgage include the origination fee, an appraisal fee and other charges similar to those for regular mortgages. Loan advances from a lender-insured plan may be larger than those provided by FHA insured plans. Lender-insured reverse mortgages also may allow you to mortgage less than the full value of your house , thus preserving home equity for later use by you or your heirs. Loan repayment is triggered when the house is sold or is no longer occupied as your primary residence. In a case of more than one borrower, repayment is triggered when the last borrower permanently moves out.

In Conclusion, A Reverse Mortgage can be a valuable alternative for seniors and older Americans who are facing challenges and stresses on their financial situations.

For More Information and a Free DVD on Reverse Mortgages and Banks:
Get A Reverse Mortgage

Post from: Debt Consolidation

Reverse Mortgages Defined

Home Mortgage Refinance Loans

admin — Mon, 19 May 2008 05:42:50 +0000

Home mortgage refinance loans are loans that are obtained by exchanging the existing loan for another. This is ideal when the interest rates on current mortgages are lower. Home mortgage refinance loans are an effective way to decrease the debt on existing home mortgages. They are ideal if the rate on the previous mortgage is higher than the rate on the refinanced mortgage. Refinancing when the interest rates are lower would help to decrease any kind of debt burden, whether it is a credit card debt or a debt on the same house. It is the best way to convert from a high-interest loan to a low-interest loan. With increasing real estate prices, home mortgage loans and home refinance mortgage loans are being increasingly considered by professionals as well as people who have been planning to buy a house.

There are several advantages from refinancing: it can lower monthly payments; it can convert an adjustable-rate mortgage into a fixed-rate mortgage or a long-term mortgage in to a short-term mortgage; it can help to consolidate the debt; and it can generate some extra cash, which can be used for home improvement that can increase the value of the home.

There are certain aspects to be considered about refinancing home mortgages: the price of the home may actually come down, instead of going up, thus making repayment difficult; there could be additional costs of refinancing; you may have to move out of the house sooner than expected, etc. Refinance costs include application costs, appraisal costs and legal fees. But with increasing competition, most lenders are offering low-cost and no-cost refinance options for home mortgages. However, the waiver of these costs may mean accepting a slightly higher rate.

The best source for knowing about home mortgage refinance is the Internet. Most mortgage loan companies provide information through their websites, also. These sites are updated daily with the latest mortgage rates. Their sites also have easy-to-use home refinance mortgage calculators that give all information, including payments to be made each month and the tax advantages, with the single click of a button. Most of them also have financial advisors who would provide advice online, or over the phone.

Home Mortgages provides detailed information on Home Mortgages, Home Mortgage Rates, Home Equity Mortgages, Home Mortgage Refinance Loans and more. Home Mortgages is affiliated with Compare Home Mortgage Interest Rates.

Real Estate Glossary

admin — Mon, 19 May 2008 05:10:14 +0000

Real Estate has a language allits own. Here’s some of the terminology you’ll be hearing.

An estimate ofvalue of a Real Estate property by a professional third party.Virtually all non-owner financed mortgages will require an appraisaland is generally paid for by the buyer.The value of aproperty as determined by the local tax jurisdiction which is used todetermine the amount of your property taxes.Buydown: A payment to the lenderfrom the seller, buyer, or third party, or some combination of these,that causes the lender to reduce the interest rate during the earlyyears of the loan.

Funds needed atthe time of closing (separate from and in addition to the downpayment). Loan origination fees, discount points, Attorney fees,recording fees and pre-paids are some items that may be included. Theyoften will total from 3% to 5% of the price of the home, payable incash.

Housing where theowner owns only the unit in which they live - from the interior wallsinward, generally - as well as a portion of the common area.

Theratio of a borrower’s total debt as a percentage of their total

Thedocument that, when recorded with your local government, determinesownership of a property. Transferred from seller to buyer at closing.Deposit: A portion of the downpayment given by the buyer to the seller or escrow agent with awritten offer to purchase. Shows good faith.

Why Make Meridian Idaho Home Base For Your Retirement Posted By : Joesph Gruff

admin — Mon, 19 May 2008 05:00:15 +0000

Why Make Meridian Idaho Home Base for Your Retirement Posted By : Joesph Gruff
Located on the western side of Idaho and part of the greater Boise area, Meridian Idaho is now recognized as a premier location for retirees across the U.S. who are looking for a place to place to live an active lifestyle during their golden years. Also unlike other areas that are experiencing an influx of retiring baby boomers, a Meridian Idaho home is still easily affordable.

Axis San Jose Homes: Inspired by Life, Distinguished by Design Posted By : Bob Smith12345
When it comes to real estate, it’s all about location. Despite reports of inflated real estate prices, there are many areas where luxury remains affordable. In California, for example, luxurious Axis San Jose Homes are both available and affordable.

The Importance of a Good Appraisal Posted By : Ivan Cuxeva Jr.
Few things are less understood, but more important to a real estate transaction than the official appraisal. The appraiser’s valuation lays the foundation for everything that follows.

Foreclosed Homes List- An Important Tool Posted By : Kris Koonar
Foreclosed home lists prove to be a significant tool for prospective buyers in the foreclosure market. These lists can easily be found online featuring a number of homes that have been repossessed by the bank or other mortgage lenders.

New Growth corridors Open Real-Estate Opportunities in Pune Posted By : George Gonigal
Pune is buzzing with real estate activities and the city is stretching its borders to accommodate new residential, commercial and industrial areas. Pune, known as Maharashtras ace city, is witnessing rise in new business activities like the BPO sector, IT and ITES industry.

The Art Of Buying Foreclosed Properties Posted By : Kris Koonar
Bank foreclosed properties are houses or properties that are owned by the bank itself. Banks foreclose the properties when the previous owner does not accomplish his or her duties of paying the mortgage or loan.

The Boise Area Real Estate Market Continues to Thrive in Spite of National Trends Posted By : Joesph Gruff
Boise Idaho has seemed to float above the problems that have plagued other real estate market areas in recent years for a number of reasons. The first big reason that the greater Boise area real estate market remains viable while virtually all other market areas continue to decline, is that it is being invaded by retiring baby boomer’s that have had their eye on the area for years.

A Few Tips For Best Home Appraisal

admin — Mon, 19 May 2008 04:43:18 +0000

If you are selling or refinancing your home, you are going to need a home appraisal. Here are a few tips for best home appraisal price. Start with the outside of your home. Do you need to do any painting, fixing squeaky door hinges, etc? If so, do this and also mow the lawn and trim any shrubbery and trees. Clean the rain gutters and roof if needed. Install nice handrails on all outside steps and clean or replace any outdoor patio or porch carpets. Remember these landscaping tips for best home appraisal and while you are doing the outside work, plant a few flowers to freshen up the look. The first impression is very important. Inside the home a few tips for best home appraisal results begin with making sure the furnace and air conditioning unit are working properly. Clean and then clean again. A fresh coat of paint in any room always helps and the most important items a home appraiser will look at are the electrical switches, the bathroom and kitchen facets for leaks and proper installation, any evidence of termites, and a damp basement. If you have any problems with these, you must fix them before the home appraisal. This is but a short list of items to do but these tips for home appraisal will increase the final appraisal price. If you have doubts about what needs to be done, have a free home appraisal performed.

Short Sale Hardship Requirements-The Basics

admin — Mon, 19 May 2008 03:13:49 +0000

by Jack Sternberg

A short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.

I’d like to make you familiar with the hardship tests required to qualify a home owner for a short sale. This information will help you understand the market better as an investor and aid you in zeroing in on the best deals.

As you might expect, lenders are not happy about short sales because, like anyone else, they hate losing money! That means they consider a short sale a last resort, and they’re going to make sure the defaulting owner meets their hardship tests before anything else happens. Below, I cover the typical tests that must be met before a property qualifies for a short sale:

Bad Health Chronic or catastrophic health issues can overwhelm a family and its finances. With today’s soaring medical costs, it doesn’t take long to drain a family’s bank account. When this happens, debts mount quickly, and soon the borrower is unable to meet the mortgage payment.

Death The death of a spouse, especially if he or she was the primary bread winner, can severely damage a family’s finances, especially if they bought too much house to begin with.

Divorce No secret–divorce can be expensive! In some cases, when income drops dramatically, this requires that a jointly-owned home be sold.

Military Call Ups When soldiers are called up, their income can take significant hit, especially if they’re required to endure long tours of duty. Note: Lenders consider this a true hardship since it’s out of the control of the borrower and in service of the country.

Job Transfer In some cases, an employer transfers a borrower to another area and his or salary drops instead of increasing. If the owner isn’t able to sell or rent the property, then the hardship test is met.

Disability When a borrower suffers an injury or disease bad enough to cripple or eliminate income, then, obviously, he or she can’t meet the mortgage payments, and the property is taken back.

Job Loss In many cases, when borrowers lose their jobs due to downsizing, company closings, or other factors, they aren’t able to meet mortgage payments because most haven’t saved enough to cover expenses.

Additional Factors Beyond the standards listed above, there are sometimes other factors that create a short sale situation.

One is that a property was bought at an inflated price. In the meantime, the market has dropped dramatically due to various economic conditions.

A second factor is that a property has been refinanced at, say, 125% of value, and that value was based on an over-inflated property appraisal report. Then, the area in which the home is located takes a severe economic blow, drastically dropping property values.

A third factor takes place when, due to economic conditions (local or national) beyond the owner’s control, the home’s value has dropped to a value below the loan balance.

A fourth factor concerns the “as-is condition of the property. Sometimes, properties deteriorate almost beyond repair, making it impossible for the lender to put it back into resale condition.

A fifth factor causing a short sale is when the purchase price of the home is more than the lender is able to sell the property for after foreclosure.

In summary, short sales aren’t a happy time for anyone for obvious reasons–except the knowledgeable investor. However, keep in mind that short sale opportunities aren’t all that frequent, compared to other types of investments. You can pick up some great bargains, but you will definitely have to invest more “sweat equity” in terms of time and patience than, say, foreclosures, rehabs, and other forms of deals.

Key Point: Be completely familiar with the entire short sale process before engaging in this market.

About the Author:

Jack Sternberg is the creator of the renowned “Buyers First Program”. As the “gurus’ guru”, he is well known by the professional creative real estate community as “Obi-Won Kenobi”. Having been a full time investor since 1977, Mr. Sternberg has been “at” the closing table more than 1,500 times. Mr. Sternberg has the depth of experience that lend value to his associations. Contact Mr. Sternberg at