Appraisal

Coral Springs property owners who had to choose whether to list their homes in 2018 have had a simple time understanding the overall real estate market. Throughout the country market prices have been increasing reasonably. Sales have decreased due to lack of inventory. The financing outlook has stayed positive.

The information about prices is great for sellers. However, the shortage of available properties is not so good news for buyers. The minimal home loan rates are wonderful for both buyers and sellers. That arrangement may be a little mixed up, but it is great for sellers.

The one person who is likely most able to make an informed prediction about the future of the market is Dr. Lawrence Yun, the National Association of Realtors’ Chief Economist.

He states his points carefully as most Chief Economists would, but by the end of this summer his forecasts were more self-assured than usual.

To sum up:

Price increases will self-limit: in 2019, anticipate price growth to moderate (around 3.5%)

We will no longer see “too few” properties being listed: in 2019 expect a rise in inventory.

In 2019 sales are forecasted to increase by 2%.

The above projections create an optimistic picture – especially for Coral Springs spectators. Remember the result of overheated price and sales levels? Dr. Yun anticipates the hottest local markets to moderate not from low buyer demand, but because of lacking inventory.

Preparing To Sell Your Home? – Choose The Right Improvements!

With mortgage default and foreclosure rates near remarkable lows, he reassures us that worries that the housing market has reached its peak – and be on the way to a major slow down – are “unfounded.”

Getting an understanding of how your home might expect to perform when it enters the Coral Springs market is contingent on more than just the picture of the local market through the next year.

Don’t hesitate to call us for a completely no-obligation consultation to consider more details Coral Springs homeowners should anticipate in 2019!

Home Appraisals Catching Up To The Rising Real Estate Market

One of the most difficult and unpredictable times in a home purchase and sale is the home appraisal.

Up until that point one side of the transaction is in control, whether buyer or seller.

But the home appraisal is different, a bad home appraisal can damage a good deal beyond any reconciliation.

Once the appraiser determines the value of a home and submits the home’s appraisal report it can be very difficult to dispute that value.

That’s why this week’s news pertaining to the continued rise in the value of homes is certain to make many homeowners very very happy. However, with the good news there always seems to be some level of bad news right behind it. The unintended consequences so to speak.

The mortgage loan industry appears to be a group of folks just so affected by rising home values. Specifically, when it comes down to the home appraisal. Broward County home appraisals appear to move to the front of the line when mortgage lenders are preparing their offers for mortgage. Mariam-Webster’s Dictionary defines an appraisal as “a valuation of property by the estimate of an authorized person.” In mortgage terms the appraiser gives an independent, third party assessment of the subject property. Lenders rely on an accurate home appraisal as a backstop to the loan. The value they are lending on must be recoverable should the borrower fail to repay the borrowed amount in full.

Which is why the steady rise in home values is having a less than desirable consequence on home appraisals. So long as a steady inventory of homes are selling in the recent weeks and months this not an issue at all. Considering the fact that home appraisals are dependent upon comparable sales to determine property values, this could become an issue. Especially if inventory and sales dry up, and there are less comparable sales to work with. This will cause the appraiser to look further back into the past for comparable sales. With a rising market that can cause some problems. One being, older sales won’t reflect recent price gains.

5 Basic Tips To Ensure Your Home Appraisal Goes Well

In a seller’s market this it is not unheard of. In fact, right here in Coral Springs we are experiencing lower than usual inventory on the market. Homes for sale just can’t keep up with current demand.

One likely outcome in this scenario could be that the price that the buyer and seller agreed upon will end up being higher than the value the appraiser believes, based on comparable sales. The smallest difference in value could be just enough to quell the mortgage.

Now don’t get me wrong, lenders are in the business of lending money. Which means they like to lend money and they’re especially happy when these deals work out. So rest assured they are certainly aware of this phenomenon and are keeping track. One such company is Quicken Loans. Their HPPI (Home Price Perception Index) measures the disparity between what a refinancing homeowner is seeking, as compared to the value the appraiser comes up with.

The best news (or at least on a national level) is that the gap between homeowners, home buyers and appraisers is closing. As we know real estate is hyper local, but this trend appears fairly widespread nationwide. By mid-November 2017, the difference reduced for the 5^th consecutive month. As of this writing the difference is within 1%.That’s great news for everyone.

Coral Springs and Parkland appraisals and mortgages are very important components to the home buying experience, but it doesn’t end there. Our job at Miranda Executive Realty is to guide buyers and sellers, and to fit all of the pieces of a real estate transaction together and ensure a smooth transaction along the way. Home appraisal and all. So call us to see how we can help your next real estate transaction be the best one yet.

Watch as we give 3rd Quarter 2017 statistics for Coral Springs, FL.

Statistics

Contact us to see how these stat affect your own home values. Or how they will affect your next home purchase.

Statistics courtesy of Florida’s Realtors.

Have you ever been curious exactly how Homestead Portability works? Watch the video below as our own Broward County Property Appraiser, Marty Kiar gives a great explanation.

Please feel free to share! And contact us below!

Watch more videos from Marty Kiar with BCPA here.

5 Simple Tips To Help Your Home Appraisal

Samuel Johnson is quoted saying:

“Depend upon it, sir, when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully”.

Similarly, homeowners could apply an equivalently wry modern version to real estate appraisal.

A home seller might say something like:

“Depend upon it, sir, nothing clears a home seller’s mind like knowing the real estate appraiser is coming in a fortnight”.

We would like to dispute that thought—when the appraiser is scheduled, there is really not much to worry about. There are measures that can be taken to lower stress and anxiety levels. Here are just a few simple ideas to keep in mind when “The Appraiser” is scheduled to make a visit. This is an easy to follow list for the homeowner. A good Realtor® will be invaluable with additional tips to ensure a satisfactory appraisal.

1. Be Considerate.

The job of the appraiser is partially physical. So any consideration you give to his/her comfort will be greatly appreciated, and maybe rewarded (Certainly not punished). Check for any barriers or obstacles that may impede his/her path. Ensure also that all rooms are properly heated or cooled. A sweaty appraiser is not a happy appraiser. And an unhappy appraiser is not a good thing…

2. Your Appraisal Is Not a Showing Appointment.

Appraisers will be focusing more on the physical details of the home such as square footage, structure and mechanical features. With that in mind it’s still not a bad idea to get your house in order. Even though the appraiser is not there to buy the house, we still want to sell it to them. What I mean by that is we want the appraiser to feel like this house is different than the other homes that sold in the neighborhood (by different I mean better). We don’t need a totally clutter-free show stopper, but the house must be presentable. Appraisers won’t be buying your house anytime soon, but they must buy the vision.

3. Organize Your Paperwork.

If available, it’s a good idea to dig up floor plans, location plats, surveys, permits and warranties etc. Although age is important, recent updates and upgrades are equally important in increasing the appraised value. Prepare a line item list of improvements, being sure to include the year the improvement was completed, and the cost. Believe it or not appraisers want your house to appraise at full purchase price. Everything we do to help them achieve this goal as easily as possible, the more likely we are to receive a satisfactory report.

4. Curb Appeal Still Matters.

I can’t tell you how many times we’ve met the appraiser at the property and the appraiser has complimented the curb appeal. We just discussed that appraisals are not showing appointments and the appraiser is not there to make an offer to purchase your property. But nobody can resist the “first impression” effect. It’s more of a feeling or emotion than it is a reaction. Property condition is a consideration in every appraisal, so it’s a worthwhile endeavor to maintain your front lawn. At the very least, before the appraiser arrives the front lawn is freshly cut and all of the plants are trimmed and looking their best. If there is any area in the front that needs a fresh coat of paint, it is well worth the time to make a great “first impression”.

5. No News Is Good News.

Any positive changes in the neighborhood would be a plus for the appraiser. Politely remind the appraiser of any new developments that make the area more desirable. Similarly this is not the time to discuss the freeway they’re planning behind your house. Even if your city, like our great City of Coral Springs is be experiencing rising home prices, appraisers won’t speculate on “future” values. However, providing some constructive neighborhood developments can certainly be influential to the appraiser’s conclusions. Appraisers are human after all.

One final “nothing clears the mind” quote. By me: “Nothing clears the mind like buying real estate”. This quote is not as depressing as the first quote by Samuel Johnson, and it’s absolutely true. If you’re on your own house hunt, we hope you’ll give us a call to assist you in focusing your search. And if you’re preparing to sell your house, especially in Coral Springs or Broward County, (which adds you to the soon-to-be-visited-by-the-appraiser category) the same applies. Don’t hesitate to call us. And if you have a friend that would benefit from this information please feel free to share.