Cleveland: A Million Stories

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How to Fight a Low Appraisal

You found your dream home and have just received the appraisal back for 10, no 20% below the price your offered just accepted by the seller...what now? Don't panic, you are not the only buyer this has happened to. In face, last June and July 16% of real estate sales were reported as cancellation due to low appraisals. This doesn't mean your only option is to walk away, here are five alternative options for you to consider:



Have the seller lower their asking price! 

• Sounds easy enough right? In many cases sellers are in a hard spot in this economy and are ready to sell so may be more willing to lower their asking price than you may think, especially if they know the appraisal came back at 10% or more below the accepted offer or they need to sell to purchase their new home. Some buyers are even offering incentives such as paying for the sellers closing costs, in turn making it less expensive process for them. 

Ask for a Second Mortgage on the Seller

• The second mortgage wouldn't cost the seller a thing but would of course give the buyer more debt. If a buyer cannot come up with the cash needed to close the deal payments or a lump sum at a later (set) date to the seller. Once escrow has closes the second mortgage can often be discounted and sold for less to an investor. 

Dispute the Appraisal

• While this may seem a bit intimidating you could be the potential "victim" to an unfair appraisal. By disputing you can ensure the contract price is accurate and aligned with the CMA (comparable market analysis) prepared and provided per your agent, research who actually completed the appraisal and what their reputation is. Have their been complaints filed on the company whom preformed the appraisal? Was their adequate information provided to the appraiser about the property before a decision was made? Etc. 
• If you find the appraiser is located out-of-town, you have more pull due to the face he would be less familiar with the property market. 
• If you choose to dispute ensure you have loads of information. Compile every piece of information available to you, this could mean a win or lose for your appraisal. 

Simply Ask

• Simply ask your lender for a new appraisal if you feel yours was completed inadequately. This may mean an extra charge to you but it may be worth it for as chance at your dream home. You may want to talk with your agent about the seller possibly splitting the cost with you. The listing agent and sellers agent may even be willing to split the cost so to not give either client more costs. Additional appraisals are around $400.
• This is  one of the more risky options as it could mean another appraisal coming back with the same conclusion or worse, coming back with an even higher appraisal than the first.
• The choice to allow another appraisal per your lender is up to him. You will need a very convincing argument but the chances of an override are low.

Obtain Your Own Appraisal

• You can choose to obtain your own appraisal by asking your lender for a list of appraisers. There are a couple of different ways this could turn out. The bank will review your submitted appraisal and turn the the original appraiser for their opinion to see if they agree with the new appraisal.
•  If the original appraiser agrees with the newly submitted appraisal they can adjust the original appraisal giving you your new price. 
• If they do not agree with your newly obtained appraisal, the bank may request a third appraisal or just simply deny your appraisal.

To view the original article click here.  

The Kitchen- Where the Heart Is

The kitchen is simply where the heart of many homes. It's where friends and family tend to gather during a party or get together. So much time is spent in the kitchen making food for our loved ones and is often thought of the one room in our home where we are able to help nourish our bodies. This is the one room you have no choice but to see daily and is seen during most guests visits.





Today, many new home floor plans tend to have more open floor plans with the kitchen as a central part or "focal point" of the room. The kitchen plays a truly essential part in the buying and selling of a home. Many families are look at the kitchen as a make it or break it room in their home. For these reasons alone, its extremely important to have an updated kitchen.


What buyers will be looking for in your updated kitchen, depends on what the price range of your home is. Ask your agent to educate you on what homes around your neighborhood are going for and what their kitchen is like. Be careful with your update choices. If other homes in your neighborhood do not have luxury kitchens and are priced the same as yours, it's no time to invest in a $30,000 update. You don't want to overprice. 


While thinking about what your neighbors homes are going for and what their kitchens may offer that your may not, think about what neighborhood you are in. If you are in a higher end neighborhood its time to think one the higher end of remodeling.  You want a buyer to walk into your kitchen and be able to envision themselves cooking or baking their favorite meal, not stressing about how much time and money it is going to take to make Dtheir dream kitchen happen. 


Don't overwhelm yourself with this remodel. Sometimes all a kitchen needs to make the switch is a  change in paint color, a good declutter, paint the cabinets, install newer hardware and maybe a newer counter. Update your appliances from plain white to stainless steel. If you are really looking to save some money, you may be able to complete a bit of the work on your own. 


Do your research, inquire about the neighborhood and kitchens around with your agent and ask a professional to find out what will give your kitchen stand out. 


To see the original article click here.

Customize your Kitchen

Many new homeowners quickly compile a list of "do it yourself" projects they want to complete to make their new home feel like its really theirs. One of the first areas to be fixed up is the kitchen. Here are some tips to help you get started in making your kitchen reflect you and your family:

Cabinets

• A main focus of a kitchen tends to be cabinets. To create the "cottage" look, try painting the inset of the cabinet doors and drawers a different color than the boxes. If you are looking for even more character, add the available hardware for corners of cabinets to give a more custom appeal.

  

Get Organized

• By using simple plumbing parts and some brass polish, you could have a copper pot rack or wall organizer in just a few hours. Tees and elbows push together to make the perfect holder! 

 

Indoor Herb Garden

• By screwing brackets into the side jambs and placing tempered glass shelves inside your kitchen window, you could quickly have a very natural herb garden. 

 

Backsplash

• There are so many different options for backsplash. A quick easy way to quickly transform your kitchen is through using stick-on decals which can withstand and moisture or water splashes avoiding damage. 

 

Pet Dishes

• A great idea for those water and food dishes for your pets is to insert a pull-out pet feeder. By creating an opening in the molding underneath a cabinet and placing a custom drawer inside. Place a plywood top including cut outs for the bowls to fit into. You can also put self-stick felt under the drawer to not only protect the floors from spills, but also to help the drawer to slide a little easier. 

To read this full article check out "This Old House" magazine. For more tips on improving your kitchen, visit This Old House website .

5 Ways to Spruce up the Entry Way

Curb appeal is one of the key component selling points for a home and is often one of the first areas spruced up a bit by new homeowners. Here are 5 fix-ups sure to leave you completely satisfied about your new and improved entry way! 

Lighting-

• When shopping for new exterior lighting it's important to purchase lights which not only compliment the feel of your home as well as the architecture but to focus on the entry. Choose lighting which will focus attention on your house numbers and will draw those to the decor you choose to accent. 

The Introduction-

• Think of your front door as the introduction to your home. Your front door is the last thing people will see before entering your home. There are several different choices to be made such as:
• How much maintenance is required?
• What matches our style?
• What do we want our door to say about our home?

        For a more traditional look, a wood door is the most obvious choice but 

        requires more maintenance while steel or fiberglass doors are more 

        efficient with energy and need less maintenance. However, steel and 

        fiberglass are a bit more expensive and have less style. 

Splash of Color-

• Add some color by painting your entry. New paint can really help the design and architectural details of your home stand out and make a lasting impression on guests. Make sure to pick colors which compliment each other. You will also need to think of the sun exposure you house receives as pastel colors will look washed out if placed within direct sunlight. 

Step up-

• There are so many options for those concrete steps currently leading to your front door. Research the options for the process of capping your steps with stone, brick, tile or pavers. This is an easy way to spice up the walk in welcoming your guests in a warm but stylish manner. 

Planters-

• Placing planters around your porch or entry is the perfect way to add color and style. This is also an easy way to add to the style of your entry. Choose from several different styles with incredible detail but ensure your choice is weatherproof. 

To read this original article please reference "This Old House"

Top Reasons to Sell in the Winter

The winter months have arrived and now is the time when questions arise from sellers about if selling around the holidays is worthwhile, if its a waste of time to try now or is the market will get better the longer they wait. The question to be asked back is, "Are you ready to sell?". Selling a home is a challenge for most not only emotionally but financially. If the purchase of a home was made less than ten years ago, it may not sell for what its worth making it hard to pay off the mortgage on the property. 


If this is the case, short sale or foreclosure could be the only option. Consult with a professional and look into government programs that may be able to help with financial aspects of the sell.


If there are resources available to the seller to help pay the difference on the amount owed the question arises, "are you willing to pay the additional amount so you can sell and move on?"


Consider the condition of your home. Are there a lot of repairs that need to be made before you are able to sell? Use your realtor, inquire of how much they feel it would take to make the home in top selling condition. In most cases, sellers don't put their home on the market during the colder months leaving the "inventory" of homes lower than normal which gives the homes on the market an advantage. 


Some sellers may choose to wait until Spring to place their home on the market and use the winter months to get their home in tip-top condition. You want your house to look great but if you are are ready to sell and your home is in good condition, go ahead and move forward!


While both buyers and sellers have their reasons for waiting to buy or sell (buyers are waiting for a better inventory but a steal and sellers are waiting for the perfect time to sell and still receive what their home is worth), there have been many experts stating they feel the biggest of the the price declines in the market are behind us. 


To read this entire article click here. 

Are the Holidays a Good Time to Sell?

According to a survey performed by Realtor.com the holiday season is the perfect time to buy. Think about it, less people may be looking for a home during the season but this leaves only the serious buyers and less competition on properties. 

On Realtor.com's "Holiday Home Selling Survey" there were 429 real estate professionals whom participated online between October 26, 2011 and November 8, 2011 with the holiday season being considered from November 23rd to January 2nd.


Among the 429 real estate professionals who participated: 

• 60% agreed the holiday season is a "good time to sell"
• 30% suggest the holiday season as a good time to sell to only their motivated sellers
• Only 1% were found to never advise their clients to sell around the holidays

So, what exactly are the biggest benefits to selling around the holidays?

• 79% agreed buyers are more serious about their purchase 
• 61% stated they felt having less competition is huge 
• 17% said with cold weather homes tend to appear a bit more "cozy" which gives the home an advantage 

What are the disadvantages to selling around the holidays? 

• 39% state winter weather as a challenge
• 39% state scheduling around vacations and holiday celebrations 
• 63% stated the biggest challenge is keeping a home looking presentable or "open house ready" throughout this busy time of the year. 

There is strategy to listing in the winter season opposed to those with warmer, more comfortable weather. Over 8 out of 10 participants stated online photos to be a crucial part. Due to busy schedules buyers are less likely to attend an open house and sellers are less likely to hold as many as they probably would in the warmer months. 

What will help to sell during the holiday season?

• 74% feel pricing a home to sell is the most crucial part of selling 
• 40% said staging is key
• Almost a third feel being flexible with move in dates, closing costs and other contract details is important

While there were differing opinions on holiday decor and if it should be put up or left down while the home is on the market:

• 37% feel nonreligious holiday decor should be displayed to give the home a more inviting feeling 
• 28% said all decorations should be up regardless of religious or nonreligious decor. 
• 27% say non suggestive seasonal decor is ok
• 8% feel no decor at all should be up

To light the fireplace or not to light the fireplace:

• 80% of participants suggest the fireplace be lit to stage a sellers home. This gives a very cozy and "at home" feeling for the potential buyer
• 62% also suggest updated outdoor lighting due to shorter days in the winter buyers are most likely to see the home in the evenings

To read the full article click here.