Greetings one and all! Today I wish to advise you on the concept of a buyers market.
Probably the only good thing that you hear about housing in the USA is that it's a good market for buyers. I am afraid that on this occasion and this one occasion only I am going to agree with the national media. Homes right now are at an all time high when talking about supply of homes. There are many homes out their for sale right now which means sellers are much more motivated when it comes to selling their home. They are lowering the price of their homes, sometimes in large amounts. They are making huge upgrades to their homes, new top of the line appliances, new furnaces, new central a/c, new roofs, new carpet, new ceramic tile and the list goes on. It is a good time to buy coupled with low interest rates!
HOWEVER.....
Do not.... I repeat..... DO NOT.... go into a housing search expecting every seller to bend over backwards to sell their home to you. There is a very good chance that the home you fall in love with is one that the sellers aren't all that motivated, so be ready to still make some sacrifices and compromises.
Also, because you are moving from a place like Miami, FL to Iowa City, IA don't expect motivated sellers to negotiate $10's of thousands of dollars below the asking price. No matter what, real estate is still extremely localized and although Modesto, CA has experienced a decrease of 20% in home values, Boise, ID home values have increased by 5%.
So...... be on the look out for those great deals but if you don't find them, don't be shocked to the core! Happy Housing!
Monday, June 23, 2008
Tuesday, June 10, 2008
Appraised vs. Assessed
Many people as they begin to look at homes at think of their future in a home the question of value begins to creep into the equation. Of course, nobody wants to buy a home that is isn't worth what they are going to pay for it! But who determines how much a home is worth? The homeowner? The Realtor? The bank? The government? WHO???
In the USA long ago our founding fathers wanted to create a school system by which all would have the opportunity for education. The way by which this is accomplished is mainly by property taxes. Property taxes are individually calculated based on what the local county government determines the property to be worth called an "assessed value". This value will change when there are improvements to a property and periodically when the local government decides to "re-assess" properties located within their municipality.
Now we arrive to the difference between an appraised value and the assessed value of a property. The appraised value of a property is come to using various different mathematical and market based methods, which are weighed and used according to the knowledge of a licensed appraiser. An appraised value of a home is based upon several different factors including but not limited to: location, age, square footage, condition of home and comparable sales prices. As was just said, the assessed value is changed either periodically or when major improvements are made. However, your property's appraised value is constantly changing! The current housing market we are currently in is a prime example of this. Especially on the coast's of our country, homes that were purchased for $800K or $900K a matter of 2-5 years ago are now selling for much, much less, even $500K or $600K is some instances. However, there was no major improvement or "destruction" of the property done.
The reliability of an assessed value is very shaky as properties do not simply increase and/or decrease in value every few years. Also, what if a major improvement was in fact performed on a property without the local government knowing about? Does your property retain the same value as before the improvement? Keep in mind that as your local government (assessor) determines the "assessed value" of your home they usually do not enter the property to assess the interior condition of the home which plays a very large role in determining the real value.
In the USA long ago our founding fathers wanted to create a school system by which all would have the opportunity for education. The way by which this is accomplished is mainly by property taxes. Property taxes are individually calculated based on what the local county government determines the property to be worth called an "assessed value". This value will change when there are improvements to a property and periodically when the local government decides to "re-assess" properties located within their municipality.
Now we arrive to the difference between an appraised value and the assessed value of a property. The appraised value of a property is come to using various different mathematical and market based methods, which are weighed and used according to the knowledge of a licensed appraiser. An appraised value of a home is based upon several different factors including but not limited to: location, age, square footage, condition of home and comparable sales prices. As was just said, the assessed value is changed either periodically or when major improvements are made. However, your property's appraised value is constantly changing! The current housing market we are currently in is a prime example of this. Especially on the coast's of our country, homes that were purchased for $800K or $900K a matter of 2-5 years ago are now selling for much, much less, even $500K or $600K is some instances. However, there was no major improvement or "destruction" of the property done.
The reliability of an assessed value is very shaky as properties do not simply increase and/or decrease in value every few years. Also, what if a major improvement was in fact performed on a property without the local government knowing about? Does your property retain the same value as before the improvement? Keep in mind that as your local government (assessor) determines the "assessed value" of your home they usually do not enter the property to assess the interior condition of the home which plays a very large role in determining the real value.
Friday, June 6, 2008
What gives my house value?
You may have been thinking about remodeling that bathroom or perhaps replacing the roof but can't decide which will give your home more value. Think about it no more! Here are a few tips that will help you determine what will indeed increase the value of your home.
Tip #1 Know the difference between adding value and adding desirability ("sell-ability")
Many people assume that since they have just spent $10,000 for a new roof that automatically their home is now worth that much more, SORRY, its not! The basic components of a home do not influence the value of your home as much as we think. It is assumed that when your home's value is called into question, things like walls, roof, doors and windows are in good working condition and thus are not taken into account when considering the actual value of your home even all of these are good examples of things that will make your home superior to the exact same home across the street when competing to sell.
Tip #2 Know when enough is enough!
The key to adding value to your home is knowing your limits. Everything costs money to fix, replace and/or remodel, so keep this in mind as you contemplate between gold toilets and poreclain ones. Should you go out and buy the best stuff for your house? Of course you should, but just like everything else best does not equal most expensive. Also, if you happen to live in an area of the city where the average home sells for $200,000, don't expect to remodel your home to the nicest in the neighborhood and get over $500,000. Your house based on its location has limits as to what it can be worth as the value of your home depends very much on location, location, location!
Tip #3 Not everyone is an expert
I am sure that you trust your father who has sold insurance for 25 years in another state or perhaps your college buddy who currently is the chief of medicine at your local hospital but lets be honest, real estate is not their thing! Would you tell your buddy how to perform an emergency tracheotomy? or perhaps advise your father on the difference between whole life insurance and variable life insurance? I hope not! When assessing the current value of your homes, speak to a professionally licensed appraiser or real estate agent!
These are just a few tips that I have learned and hopefully they will help you in your quest to add value to your home! Happy "value-ing"!
Tip #1 Know the difference between adding value and adding desirability ("sell-ability")
Many people assume that since they have just spent $10,000 for a new roof that automatically their home is now worth that much more, SORRY, its not! The basic components of a home do not influence the value of your home as much as we think. It is assumed that when your home's value is called into question, things like walls, roof, doors and windows are in good working condition and thus are not taken into account when considering the actual value of your home even all of these are good examples of things that will make your home superior to the exact same home across the street when competing to sell.
Tip #2 Know when enough is enough!
The key to adding value to your home is knowing your limits. Everything costs money to fix, replace and/or remodel, so keep this in mind as you contemplate between gold toilets and poreclain ones. Should you go out and buy the best stuff for your house? Of course you should, but just like everything else best does not equal most expensive. Also, if you happen to live in an area of the city where the average home sells for $200,000, don't expect to remodel your home to the nicest in the neighborhood and get over $500,000. Your house based on its location has limits as to what it can be worth as the value of your home depends very much on location, location, location!
Tip #3 Not everyone is an expert
I am sure that you trust your father who has sold insurance for 25 years in another state or perhaps your college buddy who currently is the chief of medicine at your local hospital but lets be honest, real estate is not their thing! Would you tell your buddy how to perform an emergency tracheotomy? or perhaps advise your father on the difference between whole life insurance and variable life insurance? I hope not! When assessing the current value of your homes, speak to a professionally licensed appraiser or real estate agent!
These are just a few tips that I have learned and hopefully they will help you in your quest to add value to your home! Happy "value-ing"!
Tuesday, June 3, 2008
Brad Blogs?!
Welcome to my new Blog! Here you will be able to find my thoughts and others' thoughts on how to have success in real estate. Whether that means getting a good price on a new home for your family or beginning your own real estate syndicate, I will be able to help you win in the real estate game! Perhaps a little background first though; I have had various "stints" in states across the country and in othe countries as well but Lincoln, NE seems to always pull me back. I also attended school at the University of Nebraska-Lincoln where I obtained my bachelor's degree. I have worked in the real estate industry for over 5 years, first dealing primarily with property management and then in real estate sales. During my time at college I was fortunate enough to meet my wife and we were married in December of 2003. Our family will also be growing by one this coming Ocotber. Well now that you know a little about me, please let me know about you and how I can help you in what is a stellar market in Nebraska!
Subscribe to:
Posts (Atom)