I received a phone call today from a gentleman in New York who had a very good question.  He had contacted a Realtor® that showed him a few properties.  He did not have a “Buyer’s Agency” or agreement with the Realtor®.  A “Buyer’s Agency” is a signed agreement between you and an Agent or Realtor® that they will find you a home and they will receive payment or commission for their services once you close on a home.  He had found a home that was a “For Sale By Owner” or FSBO as is known in the real estate world.  He was appreciative that his Realtor® had shown him properties, but he found this one on his own and was not sure if she should receive some sort of compensation.  My advice is this…and I have done this.  I have had clients that have found a FSBO and I contacted the seller and we negotiated a deal.  I would write up the contract, handle inspections, survey, the buyer’s lender, coordinate the closing and make sure things went smoothly for a nominal fee.   The situation with my clients was a win-win for everyone, especially since the day before closing, someone broke in to the home, did some damage by kicking in a window.  I was there with my contractors, got the damage repaired and passed my contractor’s discount on to the seller.  Realtors® do provide a very valuable service when it comes to buying and selling real estate and I recommend working with one in all facets of buying or selling, even if it is a FSBO.

The Importance of an Appraisal

An appraiser is a professional person who is licensed by the State and can tell you what your home is worth. The appraiser will come to your house and list the number and size of the rooms and any extras, such as a fireplace, porch, pool, or garage. The appraiser will compare your home and property to other homes that have sold recently with similar features. The appraiser then estimates that your home might sell for approximately the same amount of money as similar homes. This is called an “appraisal.” In short, an appraisal is the estimated amount of money your home may sell for.

What is a Real Estate Appraiser?

A real estate appraiser is an impartial, independent third party who provides an objective report on the estimate of value of real estate. The appraisal is supported by the collection and analysis of data.

A real estate appraiser values real property (land, houses, buildings, etc.), not personal property (cars, jewelry, furniture). The appraiser determines the physical characteristics of the property to be appraised and estimates value based upon three common approaches to value:

Sales Comparison Market Approach

Cost Approach

Income Capitalization Approach

A state licensed real estate appraiser meets nationally established standards for education and experience, and successfully passes a comprehensive examination. A state licensed appraiser conforms to national ethical and professional standards, which establish the standards for ethics, competency and confidentiality governing professional appraisal practices.

When Should I Use An Appraiser?

You will likely need the services of a real estate appraiser whenever an estimate of the value of your real estate is required. Most commonly, this occurs when you apply for a real estate loan, either to purchase or refinance your home. You may also need a real estate appraiser to assist in the appeal of your property tax assessment, for insurance purposes, for probate and estate settlements or other reasons.

What’s My Property Worth?

It is common to ask the appraiser this question as soon as the appraiser has inspected the property. The truth is at that time the appraiser doesn’t yet know. The inspection is the first step of many that the appraiser must complete before a value is determined.

The appraiser measures the house from the outside to determine square footage. The appraiser takes notes concern- ing the features of your house such as room layout, number of bedrooms, baths, etc. The appraiser also makes a determination of the general condition, appeal and functional layout of your house. All of these items are taken into consideration in the appraisal report.

How Long Does an Appraisal Take?

The physical inspection of a typical property usually takes about twenty to forty-five minutes. Sometimes an inspection can take longer if the house is difficult to measure or has some unique features that require additional investigation by the appraiser.

After the initial inspection of the property the appraiser spends time examining or analyzing the neighborhood or area. The purpose of this is to search for other properties that are similar to the property being appraised that have sold recently and examine neighborhood influences. When the fieldwork is finished, the appraiser completes the report at his office.  Average time for an appraisal to be completed is 7-10 days after the inspection of the property.

What Does The Appraiser Need to Know?

To help the appraiser complete the appraisal, you can provide some information that is helpful. Please tell the appraiser of any previous sale on the property within the last 12 months. Indicate if there is a pending contract to purchase on the property. Does the property have any right of way or other easements? Is there structural damage, or water leakage in the house? Is the property in a flood zone? Basically, inform the appraiser about any hidden features or detriments to the property.

How Do I Choose an Appraiser?

Although federal and state laws usually require that the lender must hire the appraiser when the appraisal is to be used for a real estate loan, some lenders will allow you to select an appraiser from their list of approved appraisers. For all other appraisals, you are allowed to select your own appraiser.

Licensed real estate appraisers can be found on the internet or by talking to your friends who have previously used an appraiser. Be sure to interview the appraiser carefully to determine if he or she is licensed and experienced in appraising your type of property.

Most licensed appraisers will provide an advance estimate of the cost to perform the appraisal, and many will commit to a fixed fee for the appraisal. It is always wise to obtain a written contract for services which includes a description of what is to be appraised, the scope of the assignment, the anticipated delivery date, the fee and terms of payment.

 

Pet odors can be a problem when you’re in the process of selling your home. If your house has an odor problem, you should remove any offending furniture or carpets or hire a professional to clean them. Be sure to check the cat box frequently and keep the litter fresh.

Since some people have allergies or fears of certain animals, it’s a good idea to put dogs or cats outside or confine your pets to one area when your house is being shown. It’s hard for buyers to fully appreciate your home through itchy, watery eyes or in between sneezes! Even if the house is exactly what they want, your chances of selling it are less if the scent of Spot lingers in their memory.

Courtesy of the “Real Estate Advisor“

Staging is something every home seller should know about. It’s preparing your home to appeal to the largest group of home buyers possible. Staged homes sell faster and for more money than comparable homes in the same area.

Clear the clutter - Remove knickknacks, trophies, plaques, family photos, children’s artwork, refrigerator magnets, etc. Make your home look like it doesn’t belong to anyone. This makes it easier for a prospective buyer to come in and see themselves living there.

Color scheme - Repaint rooms with neutral colors. The majority of home buyers want a home they can move into without doing any work until they are ready.

Don’t forget the odors - A house that smells odd to a prospective buyer can be a deal breaker. Odors from dogs, a cat’s litter box or cooking need to be eliminated. Take steps to freshen up by steam-cleaning the carpets, moving litter boxes elsewhere, and, if weather permits, opening the windows for a few minutes to let fresh air in. Be careful about masking odors with air fresheners or potpourri … those can become offensive odors to buyers as well.

Maintenance - Remember that cracked window you never replaced, or the other things you were going to get around to repairing? Well, now’s the time. People like homes that look like they have been well maintained. They want a house that is “move-in ready”!

Listen to your Realtor - Your Realtor knows what buyers are looking for in a new home, and will tell you what you need to do to get the best price possible in today’s market,

Make your home look warm and inviting.