Want to learn how to deal with a low home appraisal? In a competitive real estate market, a home being sold may enter into a multiple offer situation which could potentially raise the purchase price above the comparable sales in the area. In a situation like this, it is possible that the home appraisal for the buyer’s mortgage lender will come in lower than the purchase price. In a real estate market that favors buyers (home prices are soft or declining), sellers can also face a home appraisal that is lower than what they paid for the home if they bought the house at the peak of the market. Be aware that a low home appraisal can happen in any type of real estate market.
Why Do Low Appraisals Happen?
Here are a few reasons why a home appraisals may come in low:
Inflated home price because of multiple offers.
Declining real estate market due to a large inventory of homes and not enough buyers.
The seller has overpriced the home.
The real estate appraiser lacks experience and doesn’t understand the influences on value.
The real estate
An apartment building can still be a good investment today. Why? For starters, there are still a lot of people who are still looking for homes to rent. In addition, the units of an apartment building do not just have to be spaces for residence or homes for families and individuals. By getting the right permits, units in an apartment building can be rented out as commercial spaces.
First-time buyers of apartment buildings will certainly have high expectations regarding this particular investment. This is mainly because they will invest a significant amount of money for this venture. As such, if you want to make sure you will own the right apartment building that can help you find success in the field of property rentals, make sure you avoid these common (and costly) rookie mistakes:
Not looking into the history and reputation of the apartment building’s builder or developer.
As a first-time owner of an apartment building, the last thing you want to happen is to stumble upon some structural problems or system failures. As such, it is important to check the background, capability, and reputation of the company that constructed the whole property. Going online
This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.
With all this said, just because you don’t need money to buy houses, does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down
When it’s time to make a big change, life may offer a subtle sign, like a spouse’s note on your pillow that reads, “I never want to see you again”. But how do you know when to nail that “For Sale” sign in the front yard of your real estate?
As life-changing decisions go, selling your home is right up there. Whether it’s to take a promotion, care for aging parents or something more personal, only you can say if it’s the right move for you. But if the choice to sell real estate has been made and the only thing left to decide is the timing, a few pointed questions should tell you if that time is now.
Can We Afford it?
It sounds like an obvious question. Yet given that household total credit-market debt – mortgages, consumer credit and non-mortgage loans – rose to 162.6 per cent of disposable income last year (how is that even possible?), it’s not. Maybe you got in over your head with your first home, but now that you’re slightly older and much wiser, take a close look at your finances before making a move with real estate:
• Is all of your non-mortgage debt paid off?
Being a modern country, the search for and identification of desired property in Singapore are accomplished by having access to website portals, agencies and exchanges, guides and classifieds.
Different ways to locate and identify properties
With the great strides made in the tech and telecommunications the search for real estate, like everything else has been highly automated.
This is perhaps the easiest and primary method that people in Singapore use when searching for property. With a click of the cursor an untold number of sites can be browsed to provide an unending stream of information on real estate bargains, sites and prices that boggles the imagination.
One website alone may itemize literally thousands of apartment entries.
The most sought after website in Singapore is STProperties (owned by the local newspaper) which has been known to list an astounding 24,856 real estate of all shapes, sizes and prices.
The Singapore R.E. Guide is a popular reference aid to Singaporeans.
The guide is surfed on the internet and it provides a wealth of information.
It itemizes a fine collection of available apartments, condos, flats and houses for potential buyers and also provides an extensive array of available properties in their classifieds section.
Some searchers also refer to the Top
Are you an investor whose primary concern is to earn income, that is income less expenses? Then, here are the things you care mostly about: the rent you are receiving, the body corporate fees, the rates, and any other outgoings. Below are specific details you need to know to make sure you are putting your money into an income-generating apartment.
1. Which type of apartment is the best?
If you are an apartment buyer and want to become a successful income investor, the best types of apartments to invest in are the smaller ones. Ideally, you should buy properties that are below 50 square meters as they give higher returns particularly those that are below 40 square meters.
2. Why smaller apartments are better?
The obvious reason is that smaller ones are easier to rent than larger ones. As an owner, it’s much more difficult to find tenants for a large apartment with many rooms. Naturally, you need to look for a family or a group of individuals who want to live all together or you will have multi-tenancies who prefer home-sharing.
Secondly, apartment size is an important criterion for bank lending. Banks have certain restrictions on apartments that are below 40m2.
Smaller apartments are most
When you have a garage or outdoor shed in your property that is no longer being used, one option that you can consider for putting this space to good use is to convert it into a granny flat. This miniature house of sorts has become a popular fixture in many Australian homes because it offers a great way to utilise space in a residential property as well as save on rental costs that a person would have to pay if he were to settle into a place elsewhere.
This second dwelling can be fixed up to be attached to the house or separated. Many property owners choose to build it as a separate structure so that it would not disrupt the original house, which could involve high renovation fees.
Not just for grannies
The name “granny flat” is said to have come from the fact that these structures would be used by families to provide a separate living space for their ageing or disabled parents, so that they could maintain some degree of independence while still remaining within the family property where they can have company, assistance or any help that they would need.
But more and more people are becoming creative with their
Current statistics suggest that fewer and fewer people in the middle class will own their homes, particularly among the young. But several forces defy that trend.
The numbers suggest a downward economic slide: real estate chain Countrywide predicts another 600,000 people will be renters and not owners by the year 2019. This is on top of the million UK residents – concentrated in the 25- to 34-year-old age group – who have become renters since 2010.
What’s going on is fairly easy to understand. As the UK population has grown in the 21st century, house building has failed to keep up. This supply shortage increases the cost of both ownership and renting. Compounding this was the financial crisis of 2008, which was followed by a tightening of credit on all borrowing. Younger workers were being paid less as the price of housing went up. Now with wages rising, the main challenge is mustering an adequate deposit – which more typically comes from the “bank of mum and dad” than what individuals are able to save.
So what do those with money to invest make of this? Is the best option to invest in REITs, which largely concentrate on the rented sector? To be
An important aspect of hiring a contractor to do work in your home is to understand what permits, special requirements or licensure are required for each job. Once that’s understood, you can know whether it’s best to hire a licensed contractor or a handyman.
Be sure to ask for referrals and references and know the relationship of those referring parties to the contractor. Ask for pictures of installations on similar jobs that have been performed for others and give those referring parties a call or visit to ask how the work was performed, the attitude during the job, coming in on budget and wrapping up on time. Discover if there are any negative remarks online or with the BBB. Be sure he or she is qualified to handle the scope and type of work needed, especially with regard to special conditions such as lead based paint, asbestos, mold, etc.
If the home is occupied, if personal items are stored there or is otherwise notid_verified vacant, be sure to qualify your contractor if he’s unknown to you through online services such as mysmartmove.com or others. Get a copy of the contractors driver’s license and have him sign a w-9 to include
All buildings, whether residential or commercial,require adequate ventilation in order to protect the health of occupants in regular circumstances as well as in emergency situations such as fires or other contaminations of the air.
There are several types of ventilation systems, with the two main ones currently in use being natural ventilation and mechanical ventilation. Each of these is distinctly different in its way of working as well as the advantages and disadvantages it brings to the structure it is integrated into or installed in.
The presence of either of these systems is critical for a number of reasons, including the removal of stale air and toxic gases, the replenishing of fresh and clean air in an environment, the removal of moisture, and the elimination of odours, bacteria and excess heat.
Natural ventilation basically refers to any system that does not require the use of mechanical devices to displace air in the structure, instead using organic airflow and openings to draw stale air and pollutants through and out of the building.
In this lies the first of five major benefits that this type of system offers – potentially reduced installation costs compared to its mechanical counterpart. This only applies in certain circumstances however –
OK OK… I don’t really mean to not trust your Realtor or other advisors, unless they give you really bad advice, like the three mistakes outlined in this article. Many Realtors understand how to value real estate and can be a great asset (especially the ones that focus on real estate investors), but the unfortunate truth is that many investors and agents make these common mistakes:
· Add value to a property for a bedroom
· Incorrectly adjusting for square footage
· Compare non similar style homes with no adjustment
Add value to a property for a bedroom
This is by far the most common error that I see. In some cases a bedroom will add value but normally you cannot count on it. If a house has more bedrooms it is likely bigger and the large home is more valuable, but the bedroom itself is not adding the value, the square footage is. If two houses are the same size and one has an additional bedroom it is lacking something else OR has much smaller rooms, which will deter some buyers. It is basically a wash for valuation purposes. The one exception to this is if the house does not conform to the neighborhood.
When families, or individuals, first begin to think about purchasing a home, the question often arises as to whether they should buy a previously owned house, and then add a few personal touches, or whether they should hire a custom home building company to help them design their own. There are benefits and downfalls to both, making it a tough choice.
Buying a new home has certain conveniences that many people appreciate, like the fact that everything is already done. For example, the washer hook up is already in place, the walls are already insulated and the bathroom is all ready to be used. This saves the hassle, and possible conflict of making major decisions, which can be a huge relief for individuals that are a bit indecisive. Buying a home means that buyers can move in sooner, and they may save money in the long run, depending on the house.
The same things that are positives have the potential to turn into negatives. It may be nice that the washer hook up is already in its designated spot, but what if it is in the kitchen and buyers would prefer it in the bathroom. This is a small adjustment, but when
There are no yardsticks to measure the value of a freehold property. This is because evaluating a freehold is not an accurate science. However, you can follow certain guidelines on what you need to take into consideration when valuing a freehold, which is produced by the advisory services that give free advice to leaseholders. You must also take these three factors into consideration:
1. The current value of the property
2. The annual ground rent
3. The number of years currently left on the lease
Also, evaluate the expected percentage increase in property value that results from extending the leases of different lengths, along with forecasted long term interest rates and inflation rates.
Take help from an expert valuer rather than trying to work out a figure all by yourself, to present before the freeholder. An expert valuer will be able to give you the best advice, which will enable you to make a practical offer.
You will find expert valuers online. They will help you with the entire process of negotiation and buying the freehold.
For the benefit of the freehold, most surveyors add a little extra to a property’s value. This is done after comparing it with similar property with the same number of years
We have been talking a lot recently about how to locate great deals. When dealing with individual sellers I recommend following these steps:
· Make contact (advertising)
· Speak on the phone and set an appointment
· Negotiate the deal
· Due diligence
In the above list, closing refers to actually buying the house. There is no turning back after you close the deal. In the negotiation process there is also a close. What I mean by this is getting the seller to agree to the deal and sign the contract. I want to talk today about how to actually close the negotiations and get the seller to agree to your offer. This will only come AFTER you have verbally agreed to the offer.
For some reason people get scared of this. I have actually been in the house with other investors when they had a deal but did not get the seller to sign (they objected to their own offer), that is crazy. There are many rules, especially dealing with pre-foreclosures that give the seller time to back out after they sign. The right thing to do is to give them this time but your chances are much higher if they sign a contract
Buying a house is a major financial decision that will not only give you a peace of mind, but also a wonderful place to live, and of course, the perfect location to start a family for those who are planning to settle down. Sooner or later, you will have to decide to settle down on your own home that will be considered as the best location to start a family.
That being said, it is important to greatly consider the factors that will affect your everyday living experience. The following tips will help to get your search of to the right start. While it is important to note the number of rooms, the size of the yard and the layout of the kitchen, there are several important things you need to consider before making an offer.
Avoid trying to time the market
– Trying to time the market when you are planning to purchase is impossible. Considering whether the market drops low or gets too high will only prolong and possibly make you lose your chance of owning your perfect house of choice. The best time is when you find the best one that you can afford. The real estate market is cyclical,
The phrase “Homeowners Association” may sound innocuous enough to some but it sends shivers down the spines of many. In books and movies this group of home-owners is typically portrayed as power-hungry, meddling and suspicious. Think Big Brother meets Mussolini and you’ll have an idea of this group’s image.
Is this reputation deserved? It’s hard not to believe the rumors while being bombarded with news stories about Homeowners Associations (H.O.A.’s) that force residents to take down American flags, or those that take homes when residents are late paying their dues.
H.O.A.’s are like “little governments,” according to Jackie Faye of NBC News. Like all governments, they exercise the power granted to them in one of two ways: with benevolence or authority. Perhaps Abraham Lincoln foresaw the rise of the H.O.A. when he claimed that “… if you want to test a man’s character, give him power.”
So, who are these people?
A H.O.A. is actually a legal entity whose purpose is to manage a group of housing units, or a common interest development, as they are known in some regions of the country. These developments may be single-family dwellings or condominiums. The decision-making body of this entity is typically known as “the Board,” and