How do you feel like the real estate market will fair in 2017?
None of us have a crystal ball, but several contributors to The Residential Specialist publication, published by the Council of Residential Specialists (CRS), have mentioned the following indicators. I agree, it should be a good year! Existing home sales will climb, mortgage rates will increase (a little), home values will grow (3-4%) home ownership rate will stabilize, some markets may see price corrections (Austin included) and inventory woes will not change. With low interest rates, some home owners are deciding to stay in their current homes. Our local market is brisk and inventory is low – if you’re ready, now is a great time to sale your property!
Our home is under contract. The buyer has a lender and the appraisal came in lower than our sales price. Does this happen often?
It is rare, especially in a sellers’ market, but it can happen. With the changing rules of the banking institutions in the last few years, sometimes it is more difficult to appeal the appraisal. The buyer is paying for the appraisal, so you may not have access to the information unless the buyer’s agent receives permission to share it with you. However, it is not impossible. See if you or your agent are able to review the local sales comps used on the appraisal. Make sure the lender is aware of all of your home improvements and gives the appropriate value. I always make sure that the buyer’s agent has a list, if provided by the seller, of these items along with their costs – workshops, fencing, pool, outdoor kitchen, etc. A local lender will most likely be able to employ a local appraisal company. Sometimes, larger banks and lending institutions may rely more heavily on data if they are unfamiliar with the market area. And finally – make sure all the information on the appraisal is correct. Review for accuracy the square footage of the heated/cooled space, the number of bedrooms/baths, improvements etc. If they buyer is keen on the property, a 2nd appraisal is not out of the questions.
Tip of the day: No matter how long the winter, spring is sure to follow. –Proverb
Terese Peabody, Broker Associate, Stanberry & Associates
GRI, CRS, ABR, SRES, CNE, GREEN, CLHMS
400 Hwy 290 W, B-101, Dripping Springs, TX 78620
firstname.lastname@example.org, www.tpeabody.com 512-894-3488 office, 512-699-7711 cell