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By Robert Culverhouse on
4/13/2011 10:29 AM
There are numerous misconceptions about what appraisers do and how appraisers work.
Another of these is that appraisers "drive" real estate prices. Here is an example of the misconception... If a home is really worth $400,000, but an appraiser says it is worth $450,000... then a buyer will come along and pay $450,000 for it based on the appraisal. A few weeks or months later, the house across the street is appraised for $500,000 and magically a buyer appears willing to pay $500,000 for it. This happens over and over again in this fantasy example, until all the homes in the neighborhood double or triple in value.
Appraisers estimate market value by researching and a ...
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By Robert Culverhouse on
4/7/2011 8:43 AM
There are numerous misconceptions about what appraisers do and how appraisers work.
One of these is that appraisers arbitrarily assign values to properties or advocate for a client's desired outcome. This is absolutely not true. Unfortunately, this misconception is fed by the actions of a few unethical appraisers who provide inaccurate and/or non-market-based value opinions.
I was recently asked to review one of these non-market-based opinions... ...
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By Robert Culverhouse on
2/14/2011 9:42 AM
The Price Is Right… or Maybe It Isn't !
Have you been unsuccessfully trying to sell a home? Whether you are a licensed agent or a homeowner going the "For Sa ...
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By Robert Culverhouse on
1/25/2011 8:13 AM
To my Realtor and For Sale By Owner friends...
Where did you get the square footage number in your new listing? Why is it important?
Let's look at an example of the raw numbers... a 2,500 square foot home has a list price of $125 per square foot (or $312,500). Unfortunately, the home actually has 2,000 square feet of gross living area. Your list price is $62,500 too high.
This is an extreme example, but I see instances of incorrect gross living area calculations far too often. People make mistakes.
If you are uncertain about your square footage number, I can help. Contact me for an accurate building measurement and sketch.
Robert B. Culverhouse, Real Estate Appraisal & Consulting (www.tallyappraisal.com)
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By Robert Culverhouse on
1/21/2011 8:08 AM
Yesterday (January 20, 2011), I attended the January meeting of the Mortgage Bankers Association of Tallahassee. Doug Smith was the guest speaker...
"Doug Smith is a sales and sales leadership expert helping banks, mortgage companies and loan officers sell smarter and better every day!"
www.dougsmithonline.com
According to Mr. Smith, this is what we can expect in 2011: (1) a shrinking mortgage market, (2) a smaller purchase market, ...
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By Robert Culverhouse on
1/15/2011 1:17 PM
With any renovation and remodeling job, use a little common sense.
If a homeowner lives in a neighborhood of homes, which typically sell for $90,000 to $125,000... then, spending $50,000 installing a new kitchen (or 40-60% of the value of the home) would not be advisable. This homeowner will never recover his/her investment, and buyers of homes in this price range really are not expecting granite counter tops, a commercial grade Viking range, or Subzero refrigerator.
If a homeowner lives in a $90,000 to $125,000 neighborhood, and he/she spends $5,000 on new energy-efficient windows, a deck addition, and/or replaces the existing T-111 plywood siding with vinyl siding... then, that homeowner can expect a better return on the investment.
Questions? Contact me... www.tallyappraisal.com
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By Robert Culverhouse on
1/11/2011 9:58 AM
http://www.remodeling.hw.net/2010/costvsvalue/national.aspx
It is time to take a look at the Hanley-Wood 2010-11 Cost vs. Value Report.
According to the South Atlantic States report statistics, only one of the home remodelling jobs produced a positive dollar-for-dollar return... if you replace your existing front entry door with a new steel door, your return on investment is projected to be 102.1%. All the remaining remodelling jobs analyzed cost more than the resale value added to the home. However, a few of these remodelling jobs did produce a substantial return.
The project producing the greatest "bang for the buck" spent include: deck additions (72.8% return), garage door replacement (83.9% return), minor kitchen remodel (72.8% return), vinyl siding replacement (72.4% return), and window replacement (72.0% averaged re ...
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By Robert Culverhouse on
12/23/2010 7:54 AM
There are three common appraisal methods used in the appraisal process. In practice, these three methods, or approaches to value, are referred to as the Cost, Market, and Income Approaches.
The valuation process involves the investigation, organization, and analysis of specific market data. The first step is to gather as much pertinent data as possible, upon which a preliminary analysis is based. In some assignments, one or more of the three approaches may not be appropriate for a specific appraisal problem.
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By Robert Culverhouse on
12/17/2010 8:15 AM
Appraisers are licensed by individual states after completing coursework and internship hours that familiarize themselves with their real estate markets. However, the rules and regulations governing the development and reporting of an appraisal assignment are handed down from the federal level – Uniform Standards of Professional Appraisal Practice (USPAP).
The lender might use an appraiser on its staff, but more commonly the lender will contract with an independent appraiser that has been vetted through that lender’s approval process.
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By Robert Culverhouse on
12/16/2010 8:58 AM
A real estate appraisal helps to establish a property's market value or the most-likely sale price it would bring if offered in an open and competitive real estate market.
Your lender will require an appraisal when you ask to use a home or other real estate as security for a loan.
Don't confuse a comparative market analysis (CMA) with an appraisal. Real estate agents use CMAs to help home sellers determine a realistic asking price. Experienced agents often come very close to an appraisal price with their CMA, but an appraiser's report is much more detailed--and is the only valuation report a bank will consider when deciding whether or not to lend the money.
Questions or Comments... www.tallyappraisal.com
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