Buying a Home Archives – Mike Pfefferman

27

Feb

Home Mortgages

The Key Details About Home Appraisals That You Might Not Know

A home appraisal is a critical step in the buying, selling, or refinancing process, yet many people don’t fully understand how it works or what factors influence it. Whether you’re a buyer, seller, or homeowner looking to refinance, here are some key details about home appraisals that you might not know.

1. Appraisals Are Different from Home Inspections

Many people confuse appraisals with home inspections. While both assess the condition of a home, an appraisal determines the home’s fair market value, whereas an inspection focuses on identifying potential issues or necessary repairs. Lenders require appraisals to ensure the loan amount aligns with the property’s worth.

2. Appraisers Use a Comparable Sales Approach

To determine a home’s value, appraisers analyze recent sales of similar homes in the area (comps). Factors like square footage, location, upgrades, and market trends play a role. If there aren’t enough comparable sales, the appraisal may be based on a cost or income approach instead.

3. A Low Appraisal Can Impact Your Loan

If an appraisal comes in lower than the agreed purchase price, buyers may have to renegotiate with the seller, pay the difference out of pocket, or walk away from the deal. For refinancing, a low appraisal can mean you won’t qualify for the loan amount you need.

4. Homeowners Can Boost Their Appraisal Value

Small improvements, such as fresh paint, minor repairs, and enhanced curb appeal, can positively impact an appraisal. While appraisers focus on objective factors, a well-maintained home with modern upgrades can make a difference in perceived value.

5. You Can Challenge an Appraisal

If you believe an appraisal is inaccurate, you can dispute it. Providing additional comparable sales data or pointing out overlooked features can sometimes lead to a revised valuation. However, the process requires solid evidence and lender approval.

6. Market Conditions Influence Appraisals

Appraisals are affected by local market trends. In a seller’s market, rising home prices can lead to appraisal gaps, while in a buyer’s market, lower demand may result in more conservative valuations. Staying informed about market conditions can help set realistic expectations.

Understanding the Appraisal Process

Home appraisals play a crucial role in real estate transactions. Whether buying, selling, or refinancing, knowing how appraisals work can help you navigate the process more effectively and avoid surprises.

12

Apr

By Mike Pfefferman

Home Buyer Tips

Find Something Wrong During a Home Inspection? How to Discuss Repairs or Defects with a Seller

Find Something Wrong During a Home Inspection? How to Discuss Repairs or Defects with a Seller When it comes to selling a home, it is a common belief that once the offer is accepted, there is nothing else to be negotiated. However, issues and obstacles that can arise during the home inspection can be a cause for discussion with the seller. Whether you’re currently searching for houses or your offer has already been accepted and you’re preparing for the next step, here are some tips in the event that the home inspection isn’t up to par.

Be Cautious About What You Say

Without a doubt, anything that you discuss with the real estate agent regarding the property you’re looking at is going to be addressed with the seller. Instead of telling the agent everything is fine and dandy, maintain a poker face with any deficiencies in the home so you can assess them after the inspection. While a seller may think they have you on the line if all seems fine during the inspection, maintaining your peace and negotiating after the fact may end up providing a better post-inspection deal for you.

Decide What Deficiencies Are Most Important

Before negotiating any repairs or defects with the seller and how this can benefit you, ensure you prioritize what deficiencies must be fixed and what you can live without. There may be leaks and small dings in cupboards that may not be much of an issue, whereas damage in a hardwood floor that you don’t want to renovate may serve as a deal breaker. Deciding what is most important will ensure that the seller knows you’re really interested, and it will likely convince them that the fixes will make for a successful sale.

Request A Credit For Repairs

If a seller knows you’re interested in a home, you may be able to get a little bit of leeway in terms of what you can negotiate following the inspection. Instead of expecting them to deal with the hurdles of home repair, ask the seller to consider a credit so that you can ensure the repairs are completed on your own. This will not only enable you to have the repairs completed the way you would like them done, but it may also make the moving process a smoother transition for all of you.

Certain deficiencies can show up during the home inspection, so it’s important to consider how re-negotiation can benefit both the buyer and the seller. If you’re curious about home inspections and other aspects of purchasing a home, you may want to contact your local real estate agent for more information.

26

Jan

By Mike Pfefferman

Home Buyer Tips

Are You Ready for Home Ownership? Find Out by Answering These 4 Questions

Do you ever dream about a larger, roomier, or more luxurious living space? Or perhaps just want to experience the joy of owning your own home and building your net worth instead of renting? Let’s explore a few questions that can help to answer whether or not you’re ready for a new lifestyle as a homeowner.

Can You Realistically Afford To Buy A Home?

The first consideration to make is a financial one: can you afford it? Buying a home is a significant financial investment. In most cases, you’ll need to manage monthly mortgage payments for many years. The good news: owning a home is more affordable than you might think. If you’re already a stable renter then you’re most of the way there.

Do You Have Your Down Payment Saved Up?

If you’re confident that monthly payments are no problem, then the next step is saving up enough to cover your down payment. This is a lump-sum investment that you make when you buy the home. Typically your down payment is around 20 percent of the home’s cost, but there are assistance programs that can reduce this further.

Do You Know What Type Of Home You Need?

Once you’ve cleared all of the financial hurdles, you will need to decide exactly what kind of home you need. If you’re a single young professional, a condo or apartment might be the perfect starter home from which you can upgrade later. Or you might prefer something more rural which comes with more yard space, perfect for pets.

Are You Ready To Set Down Some Roots?

Finally, it’s worth taking some time to decide whether or not you’re ready to emotionally and physically invest in your local community. Is your career stable enough that you won’t be moving for at least a few years? What about that of your partner or spouse? If you don’t already, do you envision having children in the future? All of these are considerations that will help you choose the right neighborhood.

When you are ready, our professional mortgage team is here to help you finance the home of your dreams.