An appraisal is a certification by a licensed professional that a house is worth a certain amount based on comparable sales. It is, however, an opinion of value based on one person’s analysis and experience. The actual “market value” is the amount a buyer is willing to pay and for which a seller is willing to sell under normal circumstances.
Investors often misunderstand the phrase market value. Here’s a good way to understand this: Imagine that a home has been on the market for several months. Typically, homes in this particular market sell within a few weeks. But if the seller doesn’t receive a single offer, you have to assume the property is overpriced. Several factors may contribute to the problem, including the condition, location, and layout out of the house. However, all these get factored into the asking price. In short, if the house is priced right for its location, condition and features, it will sell within the same time frame of other houses in the neighbourhood.
Many times the real estate broker takes a listing at a higher price than “market” with full knowledge that the horne is listed too High. Sometimes brokers do this to win the listing over competing brokers by telling sellers what they want to hear. Like the barber who says, “It’s a great haircut,” they’ll say, “I’ll get you a higher price.” Most often, having a price that is higher than market is the seller’s fault (rather than the broker’s) because the seller has unrealistic expectations about the property’s value.
However, you can’t always blame sellers. They get their information from other brokers, the sale prices of other homes in the neighbourhood, information and misinformation from neighbours, and the most recent appraisal. Therefore, your job as an investor is to sift through the information and determine the real value of the property.
In the real estate business, the subject property is often its own best “comp.” This means that the final sales price agreed upon by the buyer and seller is generally the property’s true market value. It doesn’t matter what the real estate broker, appraiser, neighbour, or mortgage broker have said. The actual selling price will determine the property’s value.
A common trap for novice investors is the so-called “bargain” property. For example, a house is appraised at N200,000 and available for only $150,000. Certainly, there are cases in which a property is available for a real discount of 25 percent, particularly if the property is in disrepair or the seller is extremely motivated as in the case of a divorce or foreclosure.
Absent motivating circumstances, however, if the property in question sells for $150,000, the comp has been established for this house. The value of the property is what it sold for, regardless of what the appraisal shows. Many houses are listed on the MLS as “priced below appraisal” and, in fact, sit for months without selling. If a property was listed at N150,000 for six months when the average number of days on market in that price range is 96 days, does the $200,000 appraisal mean anything? Obviously not!
A word to the wise: When you’re doing comparable sales, look at the sales history of the property itself. Knowing if it was previously listed, re-listed, or sold helps a great deal in determining a property’s true value. Don’t buy a house you think is worth N200,000 just because it is appraised for N200,000 – do your due diligence
Adapted from an article “a house is its own best “comp” in Legalwiz
Why Being Viewed as a Reputable Broker Increases Your Property Viewings
When it comes to finding the right real estate professional to help you buy or sell property, reputation is everything. A good broker or agent will have a wealth of knowledge and experience in the industry and be able to provide sound advice when it comes to making one of the biggest decisions in your life. But how do you know if you are dealing with a reputable broker?
One of the best ways to gauge this is by looking at how many viewings their properties receive. A broker who is respected and viewed as trustworthy by their peers will usually have no trouble filling up their open houses – and this will be reflected in higher viewing numbers for their listed properties. According to Thrive real estate digital marketing agency, if you are looking for Increased Property Viewings, it is wise to seek out a broker who has a good reputation.
But what exactly is a “good reputation”? And how can you tell if a broker has one? Here are some things to look for:
- The broker has been in the business for a long time and has a lot of experience.
The broker knows the ins and outs of the business. He has years of experience under his belt. No matter what the situation is, he always has a solution. His clients trust him because they know he always has their best interests at heart.
- The broker is well-connected and respected by their peers.
The broker has been in the business for a long time. They have a lot of experience and are experts in their field. This makes them authority figures when it comes to giving advice about investments and property market trends.
- The broker’s properties always receive a high number of viewings.
The broker’s properties always receive a high number of viewings. Their locations are top notch and their prices are unbeatable. When it comes to finding the perfect property, the broker is always the first place to look.
- The broker is known for getting the best prices for their clients.
The broker is known for getting the best prices for their clients. In fact, many people in the industry consider the broker to be the expert in this area. The broker has a proven track record of always getting the best deals for their clients. If you are looking for someone who can get you the best price on your next purchase, then you need to speak to the broker.
- The broker is always professional and courteous, and provides excellent customer service.
The broker is always professional and courteous. He provides excellent customer service and is very knowledgeable about the products he sells. His passion for his work is evident in everything he does, and he always goes the extra mile to provide the best possible service to his clients.
Online reputation management for a property broker is essential to getting more viewings. If you want to increase the number of viewings for your property, it’s important that buyers and renters see you as a reputable broker.
In order to make sure that your potential clients see you as a reputable and reliable source, it is important to take some simple steps to manage your online presence. Make sure all of your information is up-to-date and accurate on the major listing sites, respond promptly to any reviews or questions, and keep your blog and social media updated with fresh content. Stay up to date on the latest industry news, respond promptly to client inquiries, and be available when potential tenants or buyers are looking at properties. By taking these small steps, you can ensure that your clients have a positive experience when working with you, which will help boost your business in the long run.
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Things to consider when buying a new home
Owning your own home brings a sense of freedom & arrogance that cannot be matched by renting a property but buying a new home is one of the major expenses in someone’s life. There is a big list of things to consider when buying a new home and most of them are vital than color of the paint. As it is one of the big financial decisions in your life, being informed with all basic things is most important aspect to buy a home with the complete peace of mind.
Since buying a home is a big decision for you to take, it would be great decision if all the practical steps are taken carefully in order to avoid feel sorry for your decision in days to come.
Things you need to know about buying a home
Below is the list of things you should take into consideration when buying a new home for peaceful living with a whole freedom.
Determine how much home you can afford
Determining that how much you can offer should be the first step towards buying a new home. If you are about to buy home without getting loan, the process will be easier for you but if you will pay for it via mortgage then your total debt-to-income ratio should not exceed 36%. And mortgage money owing alone should be less than 28% of the monthly income if you really want to prevent financial troubles in near future.
Assess your credit score
Credit score is one of the important things when it comes to apply for a loan. That’s why; you should assess your credit score ahead of time before applying for the mortgage. Having improved credit score can help you get lower interest rates that can save thousands of dollars until the loan fully paid. Applying for a loan with better credit score can help you get better and simply loan terms.
Loan approval numbers and down payment options
Pre approval for loans give you a clear idea of what type of mortgage you can deal in best way when buying a new home. Loan approval numbers is something that can also help you state how much you need to think for a down payment. That is the reason, it is considered as one of the vital things to consider when buying a new home that keeps you stay within your means.
Since home warranty is something that keeps you away from expensive home repairs and costs in future, you should consider the best home warranty company to make sure all things would be in your favor. Basically, home warranty is a contract between the homeowner and the warranty company that provides discounted repair and replacement service on the home’s major components; you can find a best one for your home here https://aaacreditguide.com/best-home-warranty-companies/. These companies offer best plans that provide homeowners who purchase a policy with certain coverage or plans can also be modified according to the individual needs.
Size of the home you need
Buying a bigger home space than your currently requirements or needs is always recommended by experts as you will require more space with growing family. More space in new home means you can maintain it in best possible way without facing troubles in future. But, you should also take your budget or mortgage into consideration when looking for a best suitable home space for a peaceful living.
Location is incredibly important
When it comes to buy a new home, location is one of the vital things to consider. You should choose the location near to all facilities and essentials such as school for kids, a home near to workplace or office, easy reach to grocery store and so on. By doing so, you are not only going to save your money but time as well because you are going to commuting from your home place to different locations like office, kid’s school and market etc.
Go with a trusted realtor
Due to the higher commission rates, most of peoples are cautious to avail services of realtors. You should also keep in mind that the seller, not the buyer pays the commission during the home sale transaction. Before availing the services of realtor or real estate agent, you should compare the best services in the town. Nowadays, you can also find the best real estate services online to save time and money as well.
The Most Effective Real Estate Tips
Sellers have the significant deal of information at their convenience, though a reasonable amount of it is invalid or deceiving. This article concentrates only on guidelines that have been proven to work through years of the program.
The cost makes all the difference. Unless you set an attractive, sensible cost, it will be very difficult to entice interest from buyers.
When selling a house, clear as many items out of it as you can, even if you still live in the home. The people who visit need to see themselves in your home, but your hits could give them a perspective they just can’t fit into.
Small kitchen improvements can be wise investment strategies that increase the attraction and value of your residence. Rather than taking a capturing approach to upgrading the entire kitchen area, which can be expensive, select one noticeable equipment to update and use as an “eye-catcher.” A nice isle update with a clinging equipment holder is also an excellent way to capture a consumer’s eye. Instead of changing out old units, consider giving them a clean cover of color.
Check the place of your air conditioner systems before selling your home. If necessary, have them maintained or fixed, so they are running nicely when you record your home. Typically, customers don’t like purchasing a home that requires having to spend a lot of cash on having to purchase a new heating unit. Therefore, if your AC and heating unit are in excellent condition, this attracts possible customers more.
Often the real estate industry goes through the periods. Fall designs can help your home appears more pleasant to potential customers. Always make sure that the simply foliage is raked from the lawn; this provides a cleaner overall look and increases charm.
Putting in a bidding war could be just what you are looking for. You will want to get a genuine idea of present price tags for sale here similar houses in your area.
If you are desperate to offer your residence, find out what the smallest asking cost is on similar houses in your community, and record your home at a cost that is 10 percent lower than that. Buyers will be drawn at such a low cost and will head to your home for a watching.
Before you show your home to buyers, you should open the curtains as widely as possible. Prospective buyers enjoy seeing how shiny the home can be just from the sunshine. You should pull all the curtains and curtains returning, and raise all the shutters, as well. You should even raise those windows up to let some clean air into the home along with the natural sunshine.
When trying to offer your home, make sure your ceiling is in excellent. A ceiling that is in need of significant maintenance could be a significant deal-breaker for customers. Consider offering buyers a discount on your asking cost if you do not plan to fix your home’s ceiling before selling it.
Now that you have analyzed these guidelines, your goal should be to integrate them into a tangible sales plan. Carefully develop your strategies and rest-assured that you are better prepared to cope with this varying industry. Look returning to these guidelines and stay present with the industry.
About the Author: Carol James is a writer and senior editor custom papers and essays writing service EssayLab. She has MA degree in social sciences and writes articles, reviews on the different actual subjects. So, if you have any questions regarding the writing, feel free to ask her.
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