Connect2Agent - Home Buyers and Sellers

How to choose an appraiser to value your house

Are you thinking about putting your house for sale on the market? Are you considering improving or refinancing your house? If so, one of the first things you will need to know is its value.

I conducted an email interview with Michael Tarabotto, a certified appraiser and owner of California Appraisal Solutions Corporation, on how to choose an appraiser to value your house. Tarabotto lends the following insight into this topic:

Q: What skills and services should an appraiser have?

A: An appraiser should be able to tell a good story--one that the intended reader can follow, trust and use efficiently. This skill generally comes with experience. However, twenty years of experience will not always translate into a quality appraisal. An appraiser with a diversified portfolio (or base of experience) will often provide a more meaningful product. Whether you need an appraisal for bankruptcy, probate or a mortgage loan, every assignment presents a unique problem that can be addressed in a variety of ways. A skilled appraiser can tailor their report in a way that best fits the situation and makes the most sense to its audience.

Q: What should a good appraisal include?

A: This depends on the purpose of the assignment and the intended users. For example, appraising for mortgage purposes is quite standardized. The appraisal generally includes maps, photos, sketches and basic addendums that support the opinion of value for the underwriter. Attorneys, on the other hand, have a variety of needs that can call for "letter-only" appraisals to "full narrative" reports. The amount of information, such as addendums and exhibits, will be predicated by the purpose of the assignment and the end user's understanding of the appraisal process itself.

Q: How long is an appraisal good for?

A: First, we should distinguish between the appraisal report and the opinion of value. The appraisal report for a mortgage loan is generally good for about four months after the effective date (or date of inspection) before a recertification or update is needed. The appraised value or opinion of value is only good for the effective date of the appraisal. Hence, the report generally has a life span of four months before an update is required by a bank, but the opinion is "good" as of the specified effective date only.

Will the proposed tax rebate stimulate the economy?

The new economic stimulus package proposed by President Bush and agreed on by the House would give taxpayers a rebate check. It would also allow home buyers more opportunity to refinance or purchase a house that is secured by Fannie Mae and Freddie Mac.

What has been proposed? 

The proposed tax credit for individuals who make less than $75,000 annually is $600, and $1,200 for married couples who make less than $150,000 combined gross income. Those who have children would also get an additional $300 per child.

Loan limits on loans that Fannie Mae and Freddie Mac could acquire would be raised from $417,000 to $625,500.

Is buying a house right now a sound financial decision?

As the stock market went through an upset, followed by a rebound this week, you might be wondering if it is a good time to invest in real estate.

I wrote a post last week on ActiveRain, a social networking site for the real estate industry, in which I discussed Suze Orman's advice earlier last week on NBC's Today show. Orman gave consumers three tips to protect their money; one of which pertained to real estate. She said consumers should buy real estate if they can get a good deal, "thirty to fifty percent" off. 

The response on ActiveRain has been from real estate professionals about their local markets. Some markets have shown modest appreciation of 3-5% in home prices. Others have seen a decline in home prices in varying percentages.  So far, all have commented that they cannot fathom a deal in which a real estate buyer would get 30-50% off a home sale, even if the house were a bank-owned (REO) property or in foreclosure.

6 places to get more exposure online for your house listing

If you are selling your house, you cannot underestimate the importance of marketing your house online. According to the National Association of REALTORS, more than 80% of home buyers begin their real estate search online. 

Bottom line: You need to be where real estate buyers are looking for houses.  Real estate buyers are surfing the web online to find their dream homes.

Here are 6 websites that will list your house for free:

1. Post Your Property
2. Sperling's Best Places
3. Golf Course Realty--Specifically for golf course properties
4. Postlets--A classified ad that will be placed on numerous websites
5. City Cribs--If you have property in New York City or surrounding counties
6. House.info

Your real estate agent should also post your property on his/her personal website, company website, the Multiple Listing Service and any websites that they pay to advertise on. You should not be limited when it comes to Internet real estate advertising. Every portal to a consumer can reach a potential real estate buyer for your house.

If you did not discuss your real estate agent's Internet marketing strategy at the time your house was listed, make sure you ask him/her right away. If your real estate agent is already advertising on the above-mentioned websites, make sure you are receiving regular feedback as to the results of this marketing. Internet marketing strategies need to be evaluated and sometimes tweaked to be in sync with your changing marketplace.

If you are getting ready to list your house, contact a local real estate agent and ask what his/her Internet marketing strategy is. Ask where your house will be listed online. Make sure the answer is, "everywhere possible," followed up with specifics.

Posted by Rebecca D. Levinson

Use the power of video to sell your house

What can you do to help move your house and make it stand out from the competition while it is on the market?

We are now in mid-winter, and sellers in the Northeast and Midwest regions might find it tougher to sell their house during this time. 

How about exploring the power of video and social media marketing? YouTube, the popular video sharing website, is a great place to tell your house's story. Consider making a video of your house. 

Virtual tours have been popular for the past 3-5 years, but are limited in the fact that they cannot tell a story. Video has the power to engage a viewer who could be a potential buyer for your house. You can capture the unique and special attributes of your house on video that cannot be conveyed on a virtual tour.

Get an area tour from a local real estate professional

Traveling around a new town can be a daunting task if you are not equipped with the right information. If you are taking a road trip or relocating to a new area, how do you find your way around?

I am embarrassed to say that I am directionally challenged. I am a good candidate for a GPS navigation system, but not yet ready to bite the price tag and the monthly fees. I am one of the dingbat drivers who prefers right or left to east/west/north/south directions. 

I need solid street names, landmarks and play-by-play directions to get to a new place. Give me anything else and I am a fish on land unsuccessfully trying to find my way back to sea, complete with U-turns and many sighs and exclamations of frustration, coupled with the audience of my children in the back seat saying, "Mommy, are we lost again?"

I imagine this can be a challenge for others as well and I am not the only one who suffers this fate. That is why, when you are relocating to a new town, I would consider getting a professional area tour from your real estate agent. If the agent you choose is local to the area, he/she has navigated the roads frequently and knows how to get from here to there in better time than most. 

Your real estate agent will also be able to point out the things that will matter to you when you relocate, such as the location of:

• Convenience stores
• Grocery stores
• Gas stations
• Schools
• Libraries
• Post offices

...and many other key places. He/she should also be a resource for park locations, theaters, art museums, events, etc. They can also inform you as to what roads you might want to avoid in rush hour--this can be a big one for the commuting worker.

Dr. Martin Luther King would understand the dream of homeownership

Today my attention is focused on my hero, Dr. Martin Luther King, Jr. He would understand the American dream of homeownership, as it represents more than a purchase to some American citizens. It is a representation of equality.

It wasn't until the Civil Rights Act of 1968 that housing discrimination was prohibited. The bill was passed a week after the assassination of Dr. King.   

Before the passage of the Civil Rights Act of 1968, it was not illegal to:

• Refuse to rent/sell to a person based on race, color, origin or religion.
• Intimidate or interfere with a person who wanted to live in a particular area.
• Discriminate against a person in the terms of renting or buying a house.
• Advertise the sale/rental of a dwelling that included a preference in the home buyer or renter in terms of his/her race, color, origin or religion.

You do not have to be a minority to appreciate the concept of homeownership. 

It is something that anyone in this country, who is a legal resident and who works diligently, should hopefully be able to attain.   

It is an investment that in spite of the cyclical market, can be banked on long-term as a sure thing.

It is something that I will teach and pass along to my children--along with the wise words of Dr. Martin Luther King.

Posted by Rebecca D. Levinson

Four considerations when choosing a color to paint your house

When you put your house on the real estate market, your real estate agent might advise you to first paint it. Before you go out and buy the paint or brush a stroke on your walls, read on for the top four considerations in color psychology.

In the article, "Using Color Psychology to Sell Your Home", Jeanette Joy Fisher gives real estate sellers the top four considerations in selecting their paint colors:

1. The Exterior--Muted shades with tints of gray or brown are attractive to high-end, luxury home buyers. Shades of yellow or tan with blue, green or white trim are great colors for lower-priced houses.
2. The Interior--Home buyers prefer color to white walls. Entryways, living rooms and family rooms look great in muted versions of the exterior color of the house. Kitchens shine in natural shades of browns, greens and yellows. Master bedrooms can be painted in colors that elicit intimacy, such as medium shades of blue, green or red. 
3. The Season--Choose cool colors such as blues and grays for winter. Paint in warm colors during the summer season, such as yellows and maroons.
4. The Intensity--The hue for the color that you choose is important. Pale, sunny yellow exteriors sell the fastest. Exteriors in a green-yellow hue or orange hue are a turn-off to home buyers.

Make sure to get recommendations from your local real estate agent when choosing a paint color for the interior and exterior of your house. Ask your real estate agent what colors would help to sell your house quickly and if there are any trends you should be aware of.

You also might want to consult a professional home stager or interior designer. Some real estate agents are home stagers or have an interior designer on their team, so make sure you ask for a recommendation first before you try to find someone on your own.

Posted by Rebecca D. Levinson

Bank of America will continue Countrywide's efforts to help subprime borrowers

In a press release circulated on the wires last week, Bank of America announced it is purchasing Countrywide Financial Corporation. This purchase should help strengthen Countrywide's troubled situation in the mortgage market.

For homeowners who have a mortgage with Countrywide, the combined partnership of Bank of America and Countrywide have committed to continuing the relief efforts for subprime borrowers.  These efforts include:

• Participation in the New Hope Alliance--A letter campaign that assists delinquent borrowers by providing counseling.
• Participation in California Governor Arnold Schwarzenegger's November 2007 subprime ARM Program--A program with three other loan servicers to help keep subprime borrowers in their houses at their initial interest rate if they are living in their houses and making their payments on time, but cannot afford the interest rate when their loans reset.
• Participation in the American Securitization Forum's December 2007 reset freeze framework--This is for 2/28 and 3/27 adjustable rate mortgages (ARMs). Streamlines process for loan services in loan modifications.

How to get money for your house bills

Do you have debt that you need to pay off because of home improvements? Do you need cash to pay for
home repairs or house bills? 

There is an online practice called person-to-person or social lending, in which you can seek funding from individuals online and bypass the banks.

One website, Prosper.com, allows consumers to find individuals who are looking to lend money. To get a personal loan, you first need to complete a free registration form to become a member of the website. You will receive an email verification once you have completed the registration. Click on the link provided in the email and it will activate your membership.

The next step is to verify your driver's license number and Social Security number to prove your identity. You will provide your checking account information so the funds can be deposited when your loan has been approved.