This is an interesting article about appraisal process-http://www.cnbc.com/id/31509964
Luckily I haven't had the bad experience of dealing with out of area appraisers and/or their inabilility to access the MLS although I have dealt with the delays & confusion of the appraiser not being able to communicate with the lender and this can become very frustrating, causing the Realtor to be the go between.
Thursday, June 25, 2009
Thursday, June 4, 2009
Moving Ups are Coming Back
Two months ago, 60% of home buyers were first-time buyers. Last month, 60% were repeat buyers showing that more homeowners are moving up. As the first-time buyers with the $8,000 tax credit incentive bought the starter homes, more sellers could move up to a new, larger home. Today’s environment with lower prices is the perfect model for “moving up”.
The fast moving days of 2004-2005 actually were not the best time for buyers. As was noted in last month’s Market Watch, for the 18 months starting in March 2004 there was a sharp 41% increase in home prices and although there was low inventory giving rise to those increases, a significant number of homes were sold. Sellers were selling high and buying higher as prices spiked up.
Here is why moving up to a larger home is better now. If a homeowner wants to move from a townhouse or condo to a larger home, many are concerned their current home is not at the value it was a few years ago. Because all properties in the area have depreciated by the same percentage, there is a monetary advantage in moving up now. Assume a home was valued at $250,000 and then depreciated by 20%, leaving a current value of $200,000. A previously valued $500,000 home at 20% less is now $400,000. A homeowner would sell their home for $50,000 less than its high value, but would buy the larger home for $100,000 less, giving that homeowner a $50,000 positive increase.
If you, or someone you know, think now is the time to consider “moving up”, please contact me.
The fast moving days of 2004-2005 actually were not the best time for buyers. As was noted in last month’s Market Watch, for the 18 months starting in March 2004 there was a sharp 41% increase in home prices and although there was low inventory giving rise to those increases, a significant number of homes were sold. Sellers were selling high and buying higher as prices spiked up.
Here is why moving up to a larger home is better now. If a homeowner wants to move from a townhouse or condo to a larger home, many are concerned their current home is not at the value it was a few years ago. Because all properties in the area have depreciated by the same percentage, there is a monetary advantage in moving up now. Assume a home was valued at $250,000 and then depreciated by 20%, leaving a current value of $200,000. A previously valued $500,000 home at 20% less is now $400,000. A homeowner would sell their home for $50,000 less than its high value, but would buy the larger home for $100,000 less, giving that homeowner a $50,000 positive increase.
If you, or someone you know, think now is the time to consider “moving up”, please contact me.
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