Posts

How Much is an “In-Law” Unit Worth? Less Than You Think

REALTOR MISSES VALUE OF HIS OWN HOME BY $500,000 Years ago we were refinancing a Realtor who insisted his remodeled 3,700 square foot home was worth at least $1.5 million. We were therefore shocked to see the appraisal come in under $1 million. We reviewed the appraisal and quickly realized why it was so low. […]Read More

How Much is an “In-Law” Unit Worth? Interior Access; Less Than You Think

REALTOR MISSES VALUE OF HIS OWN HOME BY $500,000 Years ago I was refinancing a Realtor who insisted his remodeled 3,700 square foot home was worth at least $1.5 million. I was therefore shocked to see the appraisal come in under $1 million. I reviewed the appraisal and quickly realized why it was so low. […]Read More

Internal Appraisal Panel; Why We Left the Broker Channel; Never Pushing Values

APPRAISER WHO LIVED 100 MILES FROM SUBJECT PROPERTY In October, I shared an appraisal horror story about a huge Appraisal Management Company hiring an appraiser who lived 100 miles away from our subject property. The appraiser crossed a major freeway to find comparable sales in a vastly inferior neighborhood, and came in $200,000 under contract […]Read More

Curb Appeal for Marketability and “Appraisability”

BAD LANDSCAPING COSTS SELLERS $200,000 I live near a home that was on the market for nearly three months before it finally ended up selling for over $200,000 less than its original list price. In contrast, I live near another home that is the same size as the home I just referenced, and it recently […]Read More

Post Close Client Touches – Homebot Part II

“Hey Jay, Just wanted to let you know that I love this tool. Truth is I actually look forward to it. I like the perspective. Really good business idea. Keep it coming. Thanks! Nick” The above quote is one of many similar comments we get from our past clients in regard to Homebot. I blogged about […]Read More

Illegal In-Law Units and Credits For Closing Costs Always OK If…

We blogged yesterday about “Clean Contracts” and received a couple of great questions. Illegal in-law units and/or kitchens:  Appraisers cannot attribute value to illegal units in most cases, unless they are typical for the area and there are comparable sales with similar units to support the value. Also, stoves from non-permitted kitchen areas must be […]Read More

Fascinating “Buy Now” Story; Ignoring Friends; Broker Opens

We told a few stories in Monday’s blog about clients who got into the market when they were young and built over $1 million in equity. A friend of ours responded to that blog with a much more extreme story that is worth repeating, both b/c it is fascinating and it imparts a great lesson. […]Read More

Market Is Market Is Market; Sellers Will Not Leave Money on Table

We have had many borrowers recently tell us that they refuse to pay a certain amount for a property b/c “the house is not worth it” despite that fact that there are five other offers on the house at the same or higher price. In a similar vein, one of our favorite Realtors told us […]Read More

As Values Climb, Refi’s for Many Now an Option

We have a borrower who has been stuck with a 6.5% interest rate for years b/c he thought he did not have enough equity in his Antioch home to refi. We checked today, and his loan-to-value ratio is under 90%; we can lower his rate 2% at no cost to him. He will now save […]Read More

Value Is Clear But Comps Are Not; Defense of Appraisers

We recently had a refi client whose house was unequivocally worth over $800,000. We knew this b/c his neighbor’s near-model-match home was “pending” at $805,000, after being on the market for less than a day. Our refi client needed a $750,000 appraisal to obtain the ARM financing he desired, but we could not come close […]Read More

“Price Per Square Foot” Issues

The Price Per Square Foot Myth: We have a client with a 2,600 square foot house listed for $1.1 Million. It has been listed pretty much forever and is not selling. The owner insists it is worth “$425 Per Square Foot” because “all the other houses in the area are selling for that or more”. […]Read More

Rates Up; Median Home Price Up?

Rates jumped yesterday based on rumors that the Fed may allow yields to creep up somewhat in order to entice the private sector into buying mortgage backed securities. As you all know, the primary buyer for the last six months has been the Fed. Without the Fed’s massive purchases, interest rates would be substantially higher […]Read More