Are all golf course lots the same?
This past weekend I was golfing . Being in real estate my entire adult career I am always looking at real estate. I imagine I look at properties a little differently than most people, being an appraiser. I typically comment to my playing partners the reason a Phoenix Appraiser is needed, need to promote the profession. It is no more apparent than when compensating for a subject site, good or bad.
In the case of a view lot much of the descriptions the public gets regarding a home is positive attributes as a good agent is doing their job of marketing a home for the seller. Golf course lots among others can be a little tricky. There are San Diego golf course lots of all types. Some view an expansive panoramic of the 18th green with adjacent pond and sand bunkers. Others view a cart path and tee box and still others, as seen in the provided picture, have no view.
The Phoenix Appraiser is an unbiased professional that takes these items seriously and will account for these differences providing their client with an accurate depiction of the site and its associated view. Then taking it a step further and comparing it to other similar sites however having differing views. The appraiser has to determine what a willing an able buyer would pay for this site over and above a similar sized lot with or without a view. While appraising is not an exact science and there is not perfect formula to apply the appraiser does what an appraiser does, research. This is comparing all kinds of sales data from the subject market and if needed competing market. Calling agents that are active in the market and surveying is also another great source. After compiling all this data adjustments are made.
If you have any further questions on the appraisal process or need a San Diego or Phoenix appraisal give us a call at 888-595-0188.
3 Top Ideas to sell home
You are selling your home in the market the nicest weather in all of the United States. What could possibly be the reason you have not sold or maybe not even getting any activity?
Being in the real estate industry for over 20 years I find while the economy and pulse of the real estate market fluctuates there are a few major factors you need to make sure you have dialed in to beat your competition.
Clean and organize
Is your home like a model home in a new community? Sure your home may not be a brand new home with all the latest bells and whistles however you need to make it immaculate. Declutter your San Diego home from the walls, rooms, closets, and garage.
Landscape and Curb Appeal
When prospective buyers drive by your home is the landscape looking manicured and healthy? The plant life should be in good shape. Trim out any overgrown plants and clean the walkways. A fresh coat of paint may be in order as well. While painting is not cheap a fresh coat of a neutral color may be the facelift your San Diego home needs. Lets face it painting and landscape may be one of the easiest do it yourself enhancements you can handle on your own.
Appraisal of your Phoenix home
While the Phoenix home market has been very hot over the past few years be careful not to be too aggressive in pricing. The absolute most important piece of the selling puzzle is the pricing. For a few hundred dollars you can have an appraiser out and get yourself an unbiased 3rd party opinion of value. Not only that but the appraiser is going to be able to verify the home is marketed at the appropriate square footage and point out some marketing features you may not have considered. The Phoenix appraiser may also be able to let you know some issues which may arise when that buyer does come through with an offer. In a hot market the appraisal will get you the realistic number so you do not get tempted to chase every crazy offer that comes in which ultimately cannot obtain financing as the Lender’s appraisal may not support the amount needed for funding. Putting you right back on the market and maybe at a point when there is now more competition or less desirable market conditions to deal with.
While these three basic ideas are not new they are the most important. Get them all right at the beginning and you definitely have yourself setup for success.
Call us if you need any questions answered at 888-595-0188.
We are ready when you are….
3 Things to Consider in an Appraisal
Having completed hundreds of appraisals we never really give much thought about what the homeowner must be thinking. Recently had a home appraised and was strange being on the other end of this process. Having a stranger come through my home taking photos and not conversing much was a little strange. Not an everyday occurrence for sure. Below are a few things to consider as to what the appraiser may be thinking about.
What is the condition of the home?
If your home is older is there much in the way of differed maintenance. I mean are there those “honey do” jobs that never got the attention they needed. Peeling paint, exposed exterior wood surfaces, soiled carpeting, damaged doors or walls. While many items may seem to be cosmetic the appraiser is observing the home for its overall condition and has to rate it. In the case of government loans, the appraiser has to test and observe additional items for compliance. It is a good idea to get these items taken care of prior to listing your home for sale or having the appraiser stop by.
Any recent sales and/or homes for sale in the neighborhood?
If you have a friend or relative in the real estate business they can help you with this. You may also check online sources to see some transactions occurring around you. Are there any “open houses” you can check out? When the appraiser is working on providing an opinion of value the best indicator is what other Buyers are paying for similar homes. This approach is called the Sales Comparison Approach and in most cases is going to be the most relied upon and utilized approach. But all in all if you know of several sales in your area you can get a rough idea.
How does my home compare?
Ultimately the appraiser is going to try and determine how does your home compare in size, features, and/or condition to home sales around you? This will more or less be how the appraisal is developed. While all homes are not exactly alike having different finishes, sizes, floorplans, and features, differing lots (situated on busy road or sites with a view) all these factors are taken into account. The appraiser will determine what these differences bring in terms of value based on other sales, conversations with local agents, and sometimes depreciated costs.
The whole process is not rocket science by any means but much more than taking a bunch of sales and dividing by square footage to derive a dollar per square foot. The more complex the assignment the more investigating and data collection is required. With real estate being one of the largest investments in your portfolio it pays to hire a professional appraiser.
By Paul Johnson ~ Sun Point Appraisal
Review of an appraisal is the most important aspect of a firms production. Appraisals with misleading and confusing analysis make a report less reliable and does not serve the public well. Lets face it we all get busy and if working from home, as many appraisers do, there can be many distractions. While the majority of reports we review only require an occasional suggested to expand explanation and commentary some may have major flaws. Outside of the occasional human flaw there is instances when reports are not saved properly within the appraisal software and uncheck the report gets delivered. Whatever the case may be the review of a report prior to delivery to the end user is the essential buffer zone to get all things in order.
Characteristics of a Quality Appraisal Report
Whether its a FNMA form or a narrative they all get a review here at Sun Point. The characteristics we look for are:
A good report should discuss market conditions on a Micro and Macro level. An appraiser is responsible for a report for a minimum of 5 years. Many things may and most likely will change in that time. Having some level of detail regarding the market at the time of the effective date of the report is needed.
The report must comply with USPAP and the appropriate regulatory requirements. Several of our clients/investors have specific items they have requested in the scope of the assignment which will need to be addressed as well.
All in all the key to a good report is it is well written, clear, concise, readable, has good logical flow, no unneeded useless information, its factual, organized, well written comments, competent and most importantly reliable.