MyHouseValue.com

The new rules also allow for fees like “no show” penalties if the borrower misses an appointment with the appraiser. There also are extra charges for mortgages greater than $500,000. Appraisal costs under these rules must be paid for up-front with a credit or debit card rather than deferred until closing.

Meanwhile, experienced appraisers say they are being forced to work for less while appraisal management companies are picking up the lion’s share.

Appraisal management companies say that analysis isn’t fair.

Rich Kuegler, a vice president at MDA Lending Services Inc., a national appraisal management company, says new fees compensate his and similar firms for “processing and administrative” duties that used to be handled by mortgage brokers and lenders. He also says that appraisers can expect greater volume working for an appraisal management company, which should compensate for lower fees.

Source: Washington Post Writers Group, Ken Harney (05/17/2009)

Pricing a property is the most critical issue that you will face.   This is not easy to do.  To be frank, most appraisers miss the mark on a regular basis simply because they price property based upon the past (up to 6 months prior); so, when pricing your home it is vital that you take advantage of an experienced, time tested profession who has a record of selling in any market!

The follow 5 tips will take you a long way :

1. Your Home is most likely to sell for top dollar when it is fresh to the market
2. Buyers buy after the shop around. Buyers are searching for the best buy.  If your home is priced to high, it will make the other homes look better … in other words, your over priced home will help your competition sell.
3. Your property will need to be appraised.  If it appraises below the contract price, the bank will not lend the buyer what they need to mortgage and buy your home … now you have a problem.   Fact, just because you can find a fool to overpay, does not mean that you will find a bank who will lend the fool the money!
4. Other than possibly location, price is the most critical issue that both buyers and Realtors both look to when selecting homes to view.  And as you know, price still rules once the location is selected. So, once again, pricing is critical even over location.
5. Negotiations
   • If priced to high, it is possible that no one will seriously consider or that the time to see the benefit of starting negotiations … they will not think thatyou are serious about selling.
   • The more accurate priced the property is, the less likely the buyer is to start the negotiations wih a low ball offer or even see the need to negotiate.

In the end, what you will find is this many times your first offer is your best offer and that when priced right, your best offer will come with in your first 10 buyers … so, if you miss the mark from day one, you will definately leave money on the settlement table as a closing gift to your buyer and no seller wants that.

Price it right - Jim Bim

Are we at the bottom?   Is it time to buyer?   If i buy now should will my investment continue to loose value / depriciate?  Should i hold off?  All are great questions and here is what the National Association of Realtors just release -

Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions. The Pending Home Sales Index rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9. Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”

Is it time to buy?  In my oppinion it is always a great time to buy!  It is like buying stock in a great company … if you are holding it for a long period of time you will always come out ahead.  Real estate by nature is a long term (7 to 10 years) hold … it’s a home not a stock and it is one of your largest investments … so, the market may drop a bit more or we could be at the bottom, either way now is the time to buy a home.  Don’t miss this once every 20 years or so chance to get in on the ground floor.

Your input or questions are greatly apriciated as always.

Jim Bim

Well it is about time that our political leaders finally are looking to the segment of the market that can lead us out of this situation - mess. 

So is now the time to buy?  Great question … and the answer is really easy but I am going to answer it with a question.  Here is the question … how long do you intend to live in the next property or how long do you intend to hold the investment?  

If your answer is 7 to 10 years then buy now buy now buy now … yes buy now!!! We may not be at the bottom and we may be at the bottom AND the point is this – homes are a great value and interest rates are low.

Might there be a better deal, sure there almost always is BUT just like the stock market … take out a few ups and a few downs and those folks who try to play the swings always loose.  So, find the right home, make sure that it is a good value, have it inspected and if all goes through on this stimulus package you may even get a $15,000 tax credit even if you are not a first time home buyer and regardless of the price range.   It finally looks like those of us who pay taxes are finally getting something as opposed to just having taxes taken from us …

jimbim