We are currently looking at replacing a flat roof on a rental property. We assumed everything was fine but found out from a contractor hired to replace some facia board that there was a leak in more than one spot in the interior! He found out after speaking to the tenant who had neglected to ever mention it to us. Obviously we thought our tenant would mention if there was water coming in when it rained. We never thought to ask "Is there water leaking though the ceiling when it rains?" The repair total for rotted would is now much more costly than if we had done routine inspections. Lesson learned. Here are some tips from State Farm about evaluating the condition of your roof.
Remember that routine inspections will save you money in the long run.
Wind, rain, sun, heat and cold – every day your roof is exposed to the elements, and their damaging effects can diminish your home’s value and impact your family’s quality of life. Performing an annual roof inspection will help keep your home and property well protected all year long. The video below shows you how.
When repair or replacement is needed, you may want to talk to your roofing professional about impact-resistant materials and construction techniques that may qualify you for homeowners insurance discounts. Done properly, roof inspection and repair will save you money now and well into the future.
Monday, October 10, 2011
Saturday, October 1, 2011
Is West Palm Beache's El Cid a place you could call home?
El Cid Neighborhood
One of the most popular neighborhoods in West Palm Beach, El Cid was designated a real estate historic district in 1993 and listed in the National Register of Historic Places in 1995. Noted for its beautiful and expansive Mediterranean revival and Mission-style homes, El Cid was developed in the height of Florida’s real estate boom and also boasts Monterey, Art Deco and Colonial Revival styles with unique architectural features. Formerly pineapple fields, the El Cid subdivision was developed by socialite Jay Phipps from Pittsburgh in the 1920’s. Popular with Baby Boomers, this historic neighborhood boasts houses with well-manicured lawns, lush landscaping with palm trees swaying in the breeze, and an upper-middle class appeal. Each Spring, the El Cid Historic Home Tour features some of the most elegant homes in West Palm Beach, many of which have undergone extensive updating and renovation. This sought after neighborhood is located along pristine Flagler Drive just south of downtown and City Place. Homes in Historic El Cid start in the $300,000 price range and can go into the millions. If you would like for information on this area or any other feel free to visit my website at http://www.realestateinpalmbeach.net/. You can search for properties in Palm Beach, Martin, Broward or Dade County. Or exclusively search through a separate link for the Island of Palm Beach through the Palm Beach Multiple Listing. As always I am here to answer your questions or assist you in anyway I can.
Monday, September 26, 2011
Home prices in Florida are increasing...how much did West Palm Beach go up?
According to a recent survey, property values increased in West Palm Beach almost 15% placing it about 8th on the list of Florida cities who real estate values are recovering. With interest rates at historical lows and property values just starting to rise, anyone who is waiting for the right to to buy a home should do so in 2011. As Warren Buffett says ..."Be fearful when others are greedy and greedy when others are fearful."
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265349
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265349
Friday, September 23, 2011
Should Florida remove the court system from the foreclosure process?
That is exactly what Governor Scott is proposing as a way to move these properties into the system and speed up a housing recovery. At this time 30 other states do not involve the courts during a foreclosure process including California where a foreclosure takes on average 30% less time than here in Florida. In addition Florida already has the second highest foreclosure rate in the country. The average time in Florida to complete the foreclosure process is 638 days! In case you haven't heard in some instances banks are so fed up with how long it takes to foreclose that they are paying delinquent homeowners to transfer the property rights back to them. If they sign the property back they receive a check from the lender. What do you think? Should Florida remove the court systems from the foreclosure process?
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265244
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265244
Wednesday, September 14, 2011
Howley's Restaurant..."Cooked in Sight, Must Be Right"
If Howley’s restaurant isn’t considered a Landmark in West Palm Beach, it definitely should be. Located at 4700 S Dixie Hwy, West Palm Beach, Fl. 33405, this local mainstay has stood its ground since 1950 when it was orignally opened by Patrick J Howley. Even though it was sold and revamped several years ago, the sign still reads the same: “Cooked in Sight, Must be Right.” But not everything has remained the same.
I have lived within a mile from Howleys since I was a youngster just starting the first grade and always feel at home when I stop in. There are two main rooms as well as outdoor dining. If you're not in the mood for a comfy booth then feel free to saddle up to the front counter on a swivel barstool with flat screen tv's overhead.
Howley’s features a wide array of great selections, with something sure to please every member of your group. The breakfast has always been delicious, served in generous portions at fair prices, but when new owners took over in 2004, lunch and dinner took a yummy turn for the better. The menu offers everything from Greek Salad, Crab Cakes, Meatloaf, Nachos, Sweet Potato Fries, Cheeseburgers, Veggie Sausage, ETC. No matter your diet, you will find something to delight your taste buds.
You can enjoy Howley’s almost anytime! So whether you’re an Early Bird or a Night Owl the hours are conveneint. Monday through Thursday from 7 am-2 am and weekend hours are 7 am to 4 am. Howley's phone number is (561) 833-5691
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Not only does Howley’s have a wonderfully eclectic food menu, but they also offer a full liquor bar including wines and craft beers!
After remoldeling in 2004, Howleys was restored to it’s original look but, not without a few twists thrown in. It’s kind of a retro diner meets hipster vibe now which includes funky painting on the walls and art that’s for sale.
Howley’s was deservingly featured on Post Picks Best of Dining: Best Breakfast
http://events.pbpulse.com/west-palm-beach-fl/venues/show/1104520-howleys-restaurant
http://events.pbpulse.com/west-palm-beach-fl/venues/show/1104520-howleys-restaurant
Howley’s loves to give back to the community and has always given generously whenever asked to our Southend Neighborhood Association www.facebook.com/southendneighbors. In addition they participate in many of the deals one can purchase online to save money. For instance, if you buy an $8 gift certificate from Charity Dine, it’s good for $20 at Howley’s! http://www.charitydine.com/restaurants/view/18
For more information including upcoming events, check Howley’s out on Facebook at https://www.facebook.com/pages/Howleys-Restaurant/117315411621283
Howley’s has indoor and outdoor seating with something on the menu for everyone. So stop on by and bring your friends, family and even your dog! You'll see why everyone loves this neighborhood gem.
Friday, September 9, 2011
Is your 11 year son or daughter desperate for a cell phone?
With school now in session you may be considering getting your child that first cell phone. Driving your children to school, soccer practice, friends houses etc, may have you wondering if a cell phone is the right choice right now? After all having a cell phone comes with a lot of responsibility and there are costs to consider.
If your children haven't asked for one they will soon because all their friends have one! You may be suprised to know that market research confirms many tween (8-12) actually do have their own cell phones. This is a step towards indepenence for your teens and tweens and also help parents stay in touch providing some comfort and security.
But is now the right time? It's a big decision so weigh your options.
Why do teens or tweens really need a cell phone?
First and foremost, you should consider the main reason for a cell phone. If you only want your child to have a cell phone for true emergencies, you can actually save money by handing down one of your old cell phones. Even without a service plan, an old cell phone is still capable of dialing 911. This does limit its use to real emergencies, but in some cases that may be enough. In that case, all you need is an old phone with a charger.
Can you pick me up? If you have a younger tween who's active in extra-curricular activities, an old phone may not work as well. In those cases, you may actually want your child to be able to call your home or cell phone–especially for those times when gymnastics runs late and impacts your schedule.
Similarly, if you have teenagers who are driving, you may want to provide them with a way to contact you if they have a problem with the car or if they're running late. Just make sure you warn them about the hazards of talking and text messaging while driving, which are two growing reasons for accidents and which in many states are now illegal.
Where are you? Another reason that some parents may be interested in purchasing a cell phone is that it helps them keep tabs on where their children are and what they're doing.
In fact, many cell phones now have the option of GPS tracking, and for a fairly small monthly fee, parents can access and track a child's location either through their own cell phones or through the Internet. GPS location is typically accurate to within 25 feet or less and is fairly reliable, though the phone still needs to be charged and turned on. Some of the options offered by various providers include whether or not your children are notified when you check their location, as well as the ability to set up a specific area where you are notified by a text message when your child leaves that area.
Safety Issues
If you think about it, cell phones give the outside world–friends and strangers alike– unprecedented access to children, often without parents knowing or monitoring that communication. This aspect is heightened by the ability to access the Internet, send and receive emails, chat using instant message programs, and of course send text messages from cell phones.
Child predators look for and exploit opportunities to communicate with children using technology that parents or adults aren't supervising. And cell phones fit the mold. In fact, Ted Thompson, President of the National Association to Prevent Sexual Abuse of Children, has gone on record as saying that cell phones for children enable what he calls a sexual predator's "grooming" process by gaining trust with a child over time.
What predators are really counting on is that parents will attach an aspect of privacy to cell phones, emails, and text messages–almost as if a cell phone deserved the same privacy as a child's diary. According to experts, the best way to combat this potential hazard is to keep tabs on your child's cell phone messages and usage with technology that allows you to monitor your child's text messages and locations.
In addition, having regular discussions with your child about the dangers and appropriate use of cell phones (as well as email and instant messaging) is highly recommended.
Make sure you set limits.
If you do decide to purchase a cell phone for your child, you'll want to establish when and how the phone can be used, including things like talking on the phone, surfing the web, purchasing ring tones, and text messaging. These features add up fast and overages can cost a small fortune. Of course, you can also limit the number of minutes with a pre-paid cell phone plan or by simply lending your cell phone to your child when he or she needs it, rather than purchasing a new one just for them.
Just remember, once you cross this bridge it will be hard to go back, especially with those pesky service contracts locking you in. So weigh your options carefully and make a decision that best fits your family's needs–whether that is a new cell phone plan for your child, a pay-as-you-go phone, or simply lending your cell phone to your child when he or she needs one.
If your children haven't asked for one they will soon because all their friends have one! You may be suprised to know that market research confirms many tween (8-12) actually do have their own cell phones. This is a step towards indepenence for your teens and tweens and also help parents stay in touch providing some comfort and security.
But is now the right time? It's a big decision so weigh your options.
Why do teens or tweens really need a cell phone?
First and foremost, you should consider the main reason for a cell phone. If you only want your child to have a cell phone for true emergencies, you can actually save money by handing down one of your old cell phones. Even without a service plan, an old cell phone is still capable of dialing 911. This does limit its use to real emergencies, but in some cases that may be enough. In that case, all you need is an old phone with a charger.
Can you pick me up? If you have a younger tween who's active in extra-curricular activities, an old phone may not work as well. In those cases, you may actually want your child to be able to call your home or cell phone–especially for those times when gymnastics runs late and impacts your schedule.
Similarly, if you have teenagers who are driving, you may want to provide them with a way to contact you if they have a problem with the car or if they're running late. Just make sure you warn them about the hazards of talking and text messaging while driving, which are two growing reasons for accidents and which in many states are now illegal.
Where are you? Another reason that some parents may be interested in purchasing a cell phone is that it helps them keep tabs on where their children are and what they're doing.
In fact, many cell phones now have the option of GPS tracking, and for a fairly small monthly fee, parents can access and track a child's location either through their own cell phones or through the Internet. GPS location is typically accurate to within 25 feet or less and is fairly reliable, though the phone still needs to be charged and turned on. Some of the options offered by various providers include whether or not your children are notified when you check their location, as well as the ability to set up a specific area where you are notified by a text message when your child leaves that area.
Safety Issues
If you think about it, cell phones give the outside world–friends and strangers alike– unprecedented access to children, often without parents knowing or monitoring that communication. This aspect is heightened by the ability to access the Internet, send and receive emails, chat using instant message programs, and of course send text messages from cell phones.
Child predators look for and exploit opportunities to communicate with children using technology that parents or adults aren't supervising. And cell phones fit the mold. In fact, Ted Thompson, President of the National Association to Prevent Sexual Abuse of Children, has gone on record as saying that cell phones for children enable what he calls a sexual predator's "grooming" process by gaining trust with a child over time.
What predators are really counting on is that parents will attach an aspect of privacy to cell phones, emails, and text messages–almost as if a cell phone deserved the same privacy as a child's diary. According to experts, the best way to combat this potential hazard is to keep tabs on your child's cell phone messages and usage with technology that allows you to monitor your child's text messages and locations.
In addition, having regular discussions with your child about the dangers and appropriate use of cell phones (as well as email and instant messaging) is highly recommended.
Make sure you set limits.
If you do decide to purchase a cell phone for your child, you'll want to establish when and how the phone can be used, including things like talking on the phone, surfing the web, purchasing ring tones, and text messaging. These features add up fast and overages can cost a small fortune. Of course, you can also limit the number of minutes with a pre-paid cell phone plan or by simply lending your cell phone to your child when he or she needs it, rather than purchasing a new one just for them.
Just remember, once you cross this bridge it will be hard to go back, especially with those pesky service contracts locking you in. So weigh your options carefully and make a decision that best fits your family's needs–whether that is a new cell phone plan for your child, a pay-as-you-go phone, or simply lending your cell phone to your child when he or she needs one.
Sunday, September 4, 2011
Foreclosure Delays Reach New Records
Did you know in some instances banks are paying delinquent homeowners to short sale their properties? Their hope is to avoid a long drawn our foreclosure process. In one instance locally in Palm Beach County, a homeowner with an offer of approximately one million dollar their home was offered $30,000 as an incentive to accept the short sale! The source of this information was a Closer for a local Attorney and Title Company who confessed she is seeing this more and more often. Read more on this in an article by Realtor Magazine.
Foreclosure Delays Reach New Records
Foreclosure Delays Reach New Records
Thursday, September 1, 2011
How not to sell a house!
Recently I showed the property of a fellow agent who had moved out of the area. He wasn't active in real estate lately but still had his license and eventually decided to list his house himself. When he initially had me over I had consulted with him about pricing and also gave him some tips for preparing his house for the market. Let's just say he made very little effort. When I showed his property here's a few things I found.
Problem: Cluttered closets, storage areas, garage and kitchen!
Solution: De-Clutter
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
The Result: The buyer made an offer on another property.
Conclusion: Before you put your home on the market take the time to prepare it for top dollar. Make a list of things you need to do and get started on them. For more tips on home selling or buying visit my website at http://www.realestateinpalmbeach.net/
Problem: Cluttered closets, storage areas, garage and kitchen!
Solution: De-Clutter
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
- If you don't need it, why not donate it or throw it away?
- Remove all books from bookcases.
- Pack up those knickknacks.
- Clean off everything on kitchen counters.
- Put essential items used daily in a small box that can be stored in a closet when not in use.
- Think of this process as a head-start on the packing you will eventually need to do anyway
The Result: The buyer made an offer on another property.
Conclusion: Before you put your home on the market take the time to prepare it for top dollar. Make a list of things you need to do and get started on them. For more tips on home selling or buying visit my website at http://www.realestateinpalmbeach.net/
Sunday, August 28, 2011
What is a Short Sale?
I still get asked this question a couple of times a month! Usually a buyer or seller will confess to me saying something like..."I don't really understand what a short sale means?" So here is the official definition.
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by leins against the property and the property owner cannot afford to repay the liens full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure, which mitigates additional fees and costs to the both the creditor and borrower. A short sale will often result in a negative credit report against the property owner, however it is less damaging than a foreclosure report.
If you are having trouble making your mortgage payment or need to sell your property for any reason and the balance you owe is more than the property will sell for call a Realtor. Most good Realtors will also have connections with lawyers who can give you sound advice and point out your options. Once you have an understanding of all the issues involved you will be able to make an educated decision. Feel free to visit my website for more sound advice http://www.realestateinpalmbeach.net/.
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by leins against the property and the property owner cannot afford to repay the liens full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure, which mitigates additional fees and costs to the both the creditor and borrower. A short sale will often result in a negative credit report against the property owner, however it is less damaging than a foreclosure report.
If you are having trouble making your mortgage payment or need to sell your property for any reason and the balance you owe is more than the property will sell for call a Realtor. Most good Realtors will also have connections with lawyers who can give you sound advice and point out your options. Once you have an understanding of all the issues involved you will be able to make an educated decision. Feel free to visit my website for more sound advice http://www.realestateinpalmbeach.net/.
Wednesday, August 24, 2011
Four Fun Things to do in West Palm Beach within Four Miles of each other!
CityPlace Is the premier shopping, dining and entertainment destination in Palm Beach County and is the center of Downtown West Palm Beach
Antique Row Is a charming district with over 40 antique shops offering an impressive selection of 17th to 20th century antiques, fine and decorative arts, period deco and modern furnishings, and much more. All within walking distance, this vast array of quality antiques stores, specialty shops and art galleries are complemented by several award-winning restaurants. Architectural Digest, The New York Times, Art & Antiques, and House Beautiful have all heralded Antique Row as one of the east coast's premier antique districts, considered the "antique design center" of Florida
Raymond F. Kravis Center for the Performing Arts Opened in 1992, the stunning $63 million Raymond F. Kravis Center for the Performing Arts holds more than 800 events each year, with more than 400,000 people in attendance annually. One of the premier performing arts centers in the Southeast, this copper and marble showcase is the center for cultural events in West Palm Beach
www.palmbeachzoo.org is a non profit zoological organization located at Dreher Park in West Palm Beach
CityPlace Is the premier shopping, dining and entertainment destination in
Antique Row Is a charming district with over 40 antique shops offering an impressive selection of 17th to 20th century antiques, fine and decorative arts, period deco and modern furnishings, and much more. All within walking distance, this vast array of quality antiques stores, specialty shops and art galleries are complemented by several award-winning restaurants. Architectural Digest, The New York Times, Art & Antiques, and House Beautiful have all heralded Antique Row as one of the east coast's premier antique districts, considered the "antique design center" of
Raymond F. Kravis Center for the Performing Arts Opened in 1992, the stunning $63 million Raymond F. Kravis Center for the Performing Arts holds more than 800 events each year, with more than 400,000 people in attendance annually. One of the premier performing arts centers in the Southeast, this copper and marble showcase is the center for cultural events in
www.palmbeachzoo.org is a non profit zoological organization located at
Monday, August 22, 2011
Top Four Home Buying Mistakes.
1. Hiring an inexperienced real estate agent. When you hire your doctor, your lawyer or your accountant you make sure they are well qualified to help you and have years of experience. As the homeowner the seller pays the real estate commission, why wouldn’t you as a home buyer hire the very best real estate agent you can? It does not cost you anymore to hire the best. For more information http://www.realestateinpalmbeach.net/
2 Taking too long to make a decision. If you find that perfect home don't procrastinate because as the weekend approaches the greater the likelihood another buyer will jump in. When negotiating, time is a home buyer’s worst enemy and can be a home seller’s best friend. If you've hired an experienced agent the chances are you have already done your homework and are well informed.
3. Not doing your homework. It’s not only about the money; often terms are just as important. If the home is vacant, the seller will likely want to close quickly. If you're not a cash buyer then a letter from your lender stating that you are qualified and can close quickly may save you thousands of negotiating dollars.
4. Not keeping an eye on resale. Remember that it is just as costly to remodel a kitchen in a home on the water as a home across the street from a busy intersection, and we all know which remodel will offer the better return on investment. So do your homework, don't take to long to make a decision if the right home becomes available and hire a realtor who will get you the best deal possible without losing the home you worked so hard to find. For more real estate help palmbeachrealestateguy.blogspot.com
Wednesday, August 17, 2011
Who do think will be driving the real estate market in the next decade? Men or Women?
The most recent nationwide studies by Florida Realtors and the National Association of Realtors has revealed that the number of female buyers has been growing substantially. I am seeing a similar trend. Based on the calls that I have been receiving, more single women are looking for homes to purchase than are single men. In fact, I am currently working with three times the number of single females than I am men.
In Florida, single men accounted for 11% of total buyers in 2010 compared to women at 18%. In a study by the Meredith Organization titled "The Rise of the Real Mom", only 44% of men considered buying a home important, compared with 74% of women. It's women who still hold the American Dream of owning a home more sacred than their male counterparts.
Another study by Boston Consulting Group estimates that women control 73% of U.S. household spending and approximately $4.3 trillion of the $5.9 trillion in consumer spending. Let's face it; if it were just us men who controlled the spending, I am afraid we would hover between a deep economic recession or depression on a regular basis. I know I'm generally content to stay in the house we own now, on the same comfortable sofa that's only, well, nine years new. For "Moore on Real Estate" by Palm Beach Real Estate Guy please visit http://www.realestateinpalmbeach.net/
In Florida, single men accounted for 11% of total buyers in 2010 compared to women at 18%. In a study by the Meredith Organization titled "The Rise of the Real Mom", only 44% of men considered buying a home important, compared with 74% of women. It's women who still hold the American Dream of owning a home more sacred than their male counterparts.
Another study by Boston Consulting Group estimates that women control 73% of U.S. household spending and approximately $4.3 trillion of the $5.9 trillion in consumer spending. Let's face it; if it were just us men who controlled the spending, I am afraid we would hover between a deep economic recession or depression on a regular basis. I know I'm generally content to stay in the house we own now, on the same comfortable sofa that's only, well, nine years new. For "Moore on Real Estate" by Palm Beach Real Estate Guy please visit http://www.realestateinpalmbeach.net/
Sunday, August 14, 2011
Are Appraisals Preventing a Housing Recovery? Part 3 of 3
Fortunately, at the end of the day, I had a buyer and a seller that were both reasonable people, and who wanted to get the deal done. As a result, my buyer came up $35,000 from the appraised value, and my seller came down $35,000. This is probably where you would you pat me on the back for a job well done… not so fast. The appraisal came in at $300,000 - exactly $125,000 below the Sales Contract price. The deal died. A few months later, I found a comparable home in the area that sold at the same time as our property was under contract, and it had a sales price of $380,000…having to be completely remodeled!
The appraisal could have been challenged but was so ridiculously low that this option was not pursued. The buyer bought another home and the seller took his home off the market.
Even if you assume that the purchase price could not be justified, had the appraiser done a thorough job making the appropriate adjustments based on recently sold properties, an opinion of value that was $50,000 below the sales price of $425,000 would have been enough to get the deal done. Shame on the lending institutions and appraisers for letting the pendulum swing too far in one direction years ago, over appraising properties and contributing to an economic crisis. Today, they are overcompensating by swinging the pendulum too far in the other direction.
The banks and their appraisers are preventing home values from rising. I currently have a property under contract that has been appraised at an average of 10% below the selling price twice in four weeks - with two different buyers and two different appraisers. The seller will not reduce the price, and the current buyer will need to make a decision in the next three days whether or not to pay over the appraised value.
The seller, who is selling by owner, has two additional potential buyers right now who want the property and will pay the price. Four buyers in four weeks have searched for the best deal they can find and chosen this home. How can all of these buyers be wrong? The banks and their appraisers are seriously hurting home sellers, home buyers, loan officers, and Realtors. If they would let the free enterprise system work, we could see the real estate market begin to turn around. For "Moore on Real Estate" by Palm Beach Real Estate Guy visit http://www.realestateinpalmbeach.net/
Thursday, August 11, 2011
Are Appraisals Preventing a Housing Recovery? Part 2 of 3
The day of the appraisal I waited at the property with my comparable sales in hand to help justify or at least come close to our Sales Contract price. The first thought that entered my mind when I saw the appraiser was "is he out of high school yet?" A young man walked in and as he introduced himself I took the opportunity to see where we stood on valuation. I casually struck up a conversation asking a series of questions.
"So what kind of adjustments do you make for a home with a recently updated kitchen and bathrooms?"
His answered "unless they are within a year, we do not give them any value"
“The updates were about four years ago,” I explained, “and are quite extensive.” “The seller even took a wall down to open up the living room during the process". I added, but decided to move on.
"How about impact windows" I asked
"We do not give them any value." He said much to my surprise.
"Did you notice the authentic Chicago Chicago
"We don't give it any value," he shot back, making notes on his clip board as he walked through the house.” He added, "A new buyer may not care about any of these improvements."
"Well...I had two buyers who must have cared about them because they both made offers within two weeks of each other and the property has only been on the market for six weeks," I noted.
"How about the fact it is on the wide part of the lake with panoramic views?" I asked, and then handed him one of my comparable properties. "This house sits at the end of a canal facing his neighbor about 25 five feet away, with no direct views and the soot collects on the water in front of their dock," I said, almost begging.
This may shock you...
"We don't make an adjustment for that," he retorted.
"The seller also buried the electric in the back yard and brought in the tropical landscaping and palm trees at a cost of about $15,000. Here is a property that sold for $410,000 about 8 months ago with no landscaping, and it had to be completely renovated," I said, handing him the listing sheet.
"We don't adjust for landscaping."
“So basically, all you’re doing is appraising the land and treating the improvement (the home itself) as a shell?” I asked.
He didn't answer.
After this encounter, I went to work again preparing my seller to come down from our contract price and my buyer to come up from a possible low appraisal. With years of experience in the real estate business, I have kept my fair share of deals together. To be continued.
Tuesday, August 9, 2011
Are Appraisals Preventing a Housing Recovery?
Over 40 % of homes in Palm Beach County
Recently I had a property under contract for $425,000 with a local doctor. It was only on the market for six weeks, shown to three prospective buyers and two of them made offers. The second buyer's offer came in as high as $405,000 and was rejected.
I became a little concerned after reviewing the most recent sales and prepared my seller and buyer that there could be an appraisal problem. Had it been just four months earlier, I explained, we would have had the sales comparables to justify our contract price. More on this later.
After speaking with many of our local Palm Beach County Realtors, I am alarmed to find out many deals are falling apart from appraisals coming in below the contract price. The only option available under this scenario is for the buyer and seller to come to a new “meeting of the minds” Which means the buyer could bring more money to the closing table or the seller could accept less money than the contracted sales price. One agent recently confessed "if a buyer wasn't cash, it would be difficult to make a deal happen!"
These low appraisals are having an impact onPalm Beach County
Recently I had a property under contract for $425,000 with a local doctor. It was only on the market for six weeks, shown to three prospective buyers and two of them made offers. The second buyer's offer came in as high as $405,000 and was rejected.
I became a little concerned after reviewing the most recent sales and prepared my seller and buyer that there could be an appraisal problem. Had it been just four months earlier, I explained, we would have had the sales comparables to justify our contract price. More on this later.
After speaking with many of our local Palm Beach County Realtors, I am alarmed to find out many deals are falling apart from appraisals coming in below the contract price. The only option available under this scenario is for the buyer and seller to come to a new “meeting of the minds” Which means the buyer could bring more money to the closing table or the seller could accept less money than the contracted sales price. One agent recently confessed "if a buyer wasn't cash, it would be difficult to make a deal happen!"
These low appraisals are having an impact on
So why would two educated professionals, one being a doctor and the other an attorney, after looking at multiple properties in the area , both make offers over what is considered fair market value? After all they both lived locally and had plenty of time to look at other properties before making their decision! To be continued…
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