What is your house worth?” This is a question so many people ask…a good question. In this market, your house is worth the appraised value…and the buyer’s lender orders the appraisal. Regulations/partnerships between appraisers and lenders are watched closely…for the buyer’s protection. The appraisal is based on the comps in your neighborhood…what has sold and for how $$$ in the last 6 months. Many times when helping first time buyers, I encourage them to stay within a set budget, knowing they need some savings for unknown “emergencies that come with the joys of homeownership”. I also stress that maintaining the property is the most important way to increase and/or maintain the property value. Often, I come back, and they have added and updated beyond the value of the comps in the neighborhood…not such a good idea. Remember, your house value is based on your neighborhood.
Just today, I wrote an addendum to a purchase contract…based on the appraisal, we are offering $20,000 less for the property. Tax values can be misleading. Many homeowners want to adjust property value to help reduce their property taxes…until the home owner decides to put the property on the market…and then increase the value…You just can’t win both ways. Even if you are paying cash for a property, order an appraisal.
Another interesting story…found the perfect “story book house” for a first time buyer that has been looking for an adorable little cottage. We took everyone in the family to see the house, from 2 years to the older members of the family. Everyone loved the house. We made an offer and all were dreaming about the possibilites…and the next day the seller decided to take the house off the market. Buyer was disappointed and seller was even more unhappy as she had lost a job opportunity that would take her to a new city. This story may not be over.
It is not too late…Sign Up for Buying 101 I love teaching this class…I go over a model that includes the steps in buying a property, tell some real stories (always the best way to teach) and there is lots of time for questions. Class meets Sept. 29, 9-10 am at the Westerville Community Center. 614-901-6500 www.westerville.org to save your seat. Usually we are done in an hour but I always stay if someone needs more info. “Independent Study is available…always! No Home OSU football…Michigan State Away …Home Economics $$$$$ in today’s world.
One more class…Pottery Barn Easton Towne Center…Decorating your Living Room..10:00 AM 9/23/12 Free with private shopping after class before the store opens…always fun! Call to reserve your spot.
Have a great weekend…notice my little grand-dog Henry…He will be coming home for the holidays soon. Can’t even imagine what it will be like to someday have grandchildren.