What Buyers and Sellers Need to Know About Appraisals: Part 2

We’re here with part two in our series about home appraisals. Today, we’re discussing how home appraisals affect sellers.

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We’re here with part two in our series about home appraisals. As we discussed before, an appraisal is an expert’s estimate of the value of a home. How do appraisals affect home sellers? Why would you, as a seller, decide to have an appraisal done on your property before you put it on the market and list it? 

First of all, maybe you aren’t sure what your property is worth and you want to be confident in the value of your home. You want to know what a buyer might be willing to pay for the home in the current market. That way, you can figure out if the numbers make it worth it for you to actually sell. 

If you are in an estate settlement, your real estate attorney will likely recommend that you order an appraisal. That way, you can establish a value for tax reasons and a value the heirs can all agree on and everyone is on the same page when it is time to sell the property. 

Maybe you are selling your home as a ‘For Sale By Owner’ property and you want to know how much to ask for your home. In that case, an appraisal can be very helpful. 

If an appraisal is a year old, it is no longer relevant in today’s market.

However, you should keep in mind that when you sell your home, the buyer is still required to order an appraisal, even if you have already ordered one. The lender will go with the most recent appraisal. 

You should also keep in mind that the appraisal tells you what the property is worth the day the appraiser came out to your home. If you ordered an appraisal a year ago, it won’t apply today.

This is another great reason why you want to work with a professional real estate agent. We constantly monitor the market and can help you price your home based on what is happening in real estate right now. 

The market can change in an instant. If you have any questions about appraisals or your home value, give us a call or send us an email. We would be happy to help you!

What Iredell County Buyers Need to Know About Appraisals

We’re here with part one of our series about home appraisals. Today, we’ll go over why appraisals matter to buyers.

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First off, what is an appraisal? An appraisal is an expert estimate of the value of something and, in this case, it’s the value of the home you are buying. Appraisals are required if you are borrowing funds, and optional for cash buyers. Your lender will order the appraisal and you will pay for it up front or at closing. This is a closing cost for the buyer. 

You already set the price of the house when you signed the contract, so why does the bank need a third party appraisal to determine the value of the property? The mortgage company or bank wants to make sure that the purchase price is equal to or higher than the appraised value. 

Why? Lenders use the lower sale price or the current appraisal. They don’t really care what you are willing to pay for a piece of property. If the appraised value is lower than the sales price, you have a problem. However, there are a few solutions. 

First of all, you can ask for a review of the appraisal. You could also go back and renegotiate the sales price with the seller. Finally, you could put down more cash out of pocket to match the appraised value.

Appraisals are required if you are borrowing funds. 

Now, you may not have enough cash on hand to make up the difference. If the appraised value is a lot lower than the sales price, you may be overpaying for the property. 

This is exactly why you need the help of a professional real estate agent to maneuver the ins and outs of your transaction. Stay tuned for part two of our series, where we discuss appraisals from the seller’s perspective. If you have any questions in the meantime, please don’t hesitate to reach out to us. We would be happy to help you!

Is the Iredell Market Favoring Buyers or Sellers?

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I wanted to take a look at the issue of housing inventory and what it means to you as a buyer or seller of a home in Iredell County.

If we've got too much supply - indicated by a lot of houses sitting on the market for sale for a long time - it tells you that we're in a buyer's market, because the longer it sits, the more the value is affected negatively. If houses are selling quickly, it means that there are more buyers out there. Low inventory can lead to multiple offer situations on your home when you sell, and this allows sellers to get the most money possible. Buyers have to hustle!

Buyer and seller markets can even vary by neighborhood.

What we like to see is a normal buyer-seller market, where there is enough inventory out there to get competitive prices for sellers, and there are enough qualified buyers willing to pay market value. You'll find that inventory is fluctuating all the time. We can actually have different parts of the country that vary greatly between a buyer’s market and a seller’s market, and it can also happen within the same county. Even in the Iredell County real estate market you'll find pockets where it is a seller's market and pockets where it is a buyer's market. It can even boil down to neighborhoods.

That's why you need access to this data when you're pricing your home as a seller or considering an offer as a buyer. That's exactly the reason why you need to work with a professional real estate agent.

For help in Iredell County, we'd love to do business with you. Give us a call or reply to this email, and let's talk soon!

Don't Wait to Get Pre-Qualified for an Iredell County Home Loan

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As a buyer, it's important to get pre-qualified in Iredell County. You're out looking for a home because you want to put money into your own pocket instead of renting. You come across a home you really love, so how do you know you can afford it unless you've already been to the lender and gotten pre-qualified? It's important to also know how much money you need for a down payment. Maybe you qualify for 100% loan financing or FHA. There are lots of options out there. Do you also have enough money for the closing costs?

“You need to know what your budget is.”

Another thing to consider with pre-qualification is that you may be approved for more money than you want to borrow. You need to know what your budget is, so you can stay within a payment range that meets your needs. The critical thing to remember in today's fast-moving market is that a pre-qualification lets the seller know that you can get the money to buy their house. If you're in a competitive situation, don't wait to get that letter.

If you have any more questions, don't wait to call!

Should Sellers Pay for Buyer Closing Costs?

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One of the issues we run into quite frequently with sellers is paying for a buyer’s closing costs. Sellers don’t understand why they are being asked to help pay for them when they are already paying their own. Let’s look at the issue a little closer.

Buyers ask sellers to help with closing costs because lenders advise them to negotiate help when cash is tight. The buyer doesn’t want to have to borrow money to pay for costs that will affect their loan, nor do they want to charge the costs to a credit card.

Another reason buyers ask for help is because seller closing costs are relatively less than what buyers pay. Some buyer costs can get pretty hefty; up to 3 to 4% of the loan, which can add up quickly. The seller and buyer can always negotiate the closing costs. By no means do you have to pay 100% of the buyer’s costs because there are always other options.

If you negotiate a higher sales price with the buyer to cover closing costs, you have to be very careful. Will the house appraise if you increase the sale price by X number of dollars to cover the closing costs?

It all boils down to negotiation, which is why you need a professional, experienced real estate agent on your side. Don’t assume that because buyers ask for closing costs that they can’t afford the loan.

If you have any questions for us about this or any other issues, don’t hesitate to reach out to us via phone or email. We look forward to talking with you soon!

Secure Your Iredell County Home Against Intruders

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Today’s video is part two of our videos about home security. I have some useful tips on how to secure your home in the surrounding Iredell County area.

• Place a metal bar along the track of sliding doors. This method prevents an intruder from forcing your door open. A closet rod, for instance, provides a simple solution and easily secures your sliding doors.
• Invest in a safe. This is a great place to look up important documents, cash, and jewelry. Make sure it’s fire proof as well.

• Conceal exterior wiring. Burglars out there are looking for ways to cut your electricity to knock out the lights and disable your alarm system.
• Dogs are a major deterrent. Even if you don’t own a dog, any type of dog-themed decorations (such as a statute or sign) can deter a burglar from robbing your home.
• Don’t disclose personal information on social media. Hold off on sharing vacation photos. Don’t let people know you’re away or when you plan on coming back.

Hopefully, these tips will help you secure your home. If you have any questions about the market, or other security options, please give me a call or send me an email today!

Security Tips Every Homeowner Should Know

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Keeping our homes secure is an important issue. Today, we’ll offer some tips on how you can easily secure your home in Iredell County.

1. Invest in an alarm system. The sound of an alarm not only deters the burglar, it also alerts your neighbors and local law enforcement of a disturbance.

2. Put up an obvious surveillance camera. This might cost you around $100, but it’s a clear sign you have a secure alarm system.
3. Clear shrubbery and trees. Don’t let bushes and plants obstruct your views on footage. Safety experts recommend keeping bushes trimmed to 3 feet in height and tree branches above 6 feet off the ground.
4. Use motion detector lights. This ensures your property will be lit without racking up the price of your electric bill.
5. Deadbolt your front and back doors. Statistics reveal 34% of intruders enter through the front door and 22% enter through the backdoor.

If you have any questions about safety or real estate, give us a call or send us an email today. We’d be happy to answer them! Our next video will feature even more home safety tips, so stay tuned.

How to Handle Vacant Homes in Iredell County

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We had nice, warm weather during the holidays, but it froze up again! Winter is here, and that could create problems for homeowners, especially if their property vacant. During this time of year, there are a few things you should pay attention to.

• Make sure your heating system is working. If you need oil or propane, you should be prepared ahead of time and stock up. You need to have enough readily available to keep it going during the cold weather.
• Set the heat low. The heat doesn’t need to be as strong as it would be if you were living inside of it. However, be aware of not setting it too low! Realtors and prospective buyers will be walking through your vacant property at some point.
• Leave utilities on. They should function properly and well! For instance, if you have a security system linked to your telephone line, keep the cable on to keep the alarms on!

• Ensure plumbing is efficient. Everything should be running okay without any surprises. Double and triple check! Additionally, cover your exterior faucets. Maybe use styrofoam covers, even. Prevent pipe bursts.
• Clean out the gutters. It’s better to do this ahead of time. Avoid excess water from precipitation by tackling this early.
• Check that windows are shut. Prevent heat loss and save on your power bills.
• Check the crawl space vents. Consider closing the vents during the winter.

If you have any questions about your vacant or occupied home, reach out to me today! Give me a call or send me an email.

How to Avoid Problems With Estate Properties

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Dealing with estate property can be especially difficult, and that's why I'm going to give you some advice on how to handle issues that may arise if you find yourself in a similar situation. 

The very first thing that I recommend that you do is to find an attorney. You'll want to deal with the Clerk of the Superior court in order to probate the will, or the court may need to decide an administrator of the will. Once you have an idea of who will dissolve the estate, you can begin the process.

You need to determine what will happen to the property. Will it be sold? Will it be divided? Often times an estate must be sold to pay off outstanding bills. This isn't always the case, but it does happen.

Your attorney will need to designate the true heirs of the property and divide the estate accordingly. In North Carolina, spouses are involved in the signing of documents when an estate is being transferred, and this can further complicate the situation. 

You will probably need the help of a real estate agent in order to determine the value of the property before it is sold. I also recommend keeping the utilities at the property running. Continuing a home warranty is also a good idea in case something happens while nobody is at the property. 

Trust me, I know how complicated and touchy this situation can be. Please don't hesitate to contact me with any questions you may have. I would love to give you a hand.

I look forward to hearing from you!

How Interest Rate Increases Impacts Iredell County

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The Federal Reserve raised its key interest rate by 0.25% on December 16th. This is known as a lift off increase. We can expect further rate increases from the Fed in 2016. What does this mean for the real estate market?

Rising interest rates make it harder for borrowers to obtain a mortgage. It's not impossible to get approved for a mortgage, but it is more difficult. For sellers, interest rate increases will impact the price of your home.

When rates slowly increase, first time home buyers may find it harder to adjust their target home prices. House hunters in general will have to adjust their wish lists to purchase an affordable home.

What can you do now to adjust? First, you need to improve your credit score. A better credit score will help you get a lower mortgage interest rate. You should also reduce your overall debt. If you're thinking of buying, check your credit report now. If there are errors in it, get them fixed now. Don't sit and wait. Finally, save as much as you can for a good down payment.

If you're a homeowner with an adjustable rate mortgage who plans on living in the home for several years, now may be the time to switch to a fixed-rate mortgage. Be sure to check the fees and closing costs before you refinance your home.

Now is the time to find a professional real estate agent to help you maneuver this changing real estate market. If you have any questions, give us a call. We would be happy to help you!