With all of the changes enacted in real estate and related industries, the appraisal process has not been immune.  Because lenders were found to be pressuring the appraisers they hired, banks now must largely work with independent appraisers, and they’re finding themselves buried in a backlog of jobs.

Because of their workloads, appraisers will gladly consider any information you can provide about your property, and will hopefully generate a more accurate report.  As a seller, list the best features of your home, including recent improvements, professional landscaping, or even benefits of your location (like access to public transportation and schools).

While you won’t necessarily be graded for your housekeeping skills, appraisers do pay attention to the very appearance and cleanliness of your home.  You can positively affect your appraisal’s outcome if your lawn is mowed or raked, your windows sparkle, and your closets look spacious.  Appraisers are practically looking through the buyer’s eyes, so pretend you’re preparing for an open house before their arrival.

Finally, be sure to request a copy of the report, because lenders are required to provide it, but you’ve got to ask.  If you find any errors in important features like square footage or property description, contact the appraiser directly.  Let the lender and your agent know, too, but understand that they cannot take any direct action under the new rules.

If you are in need of real estate guidance, please call or stop by our office and a Kingsley Real Estate Associate Broker will be happy to help you.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com and I’ll be happy to share my knowledge with you at no cost or obligation.

As you consider buying your first home, you’ll get lots of advice, but you shouldn’t do anything without a complete understanding of your financial situation and how much home you can afford.  So, where do you begin?

There are two parts to financing - the downpayment (generally 20% of the purchase price) and the balance (the remaining 80%).  Secure the best interest rate by reviewing your credit reports and correcting errors, which are surprisingly common.  Do this at least two months in advance of your home search, as that’s how long it can take to clean up your reports.

You’ll know exactly what you can afford by securing pre-approval from a lender, who will review your income, debt and credit, and suggest the loan best suited to your qualifications and needs.  If you can put down more than the usual 20%, you may qualify for a higher loan amount.

With less than 20% down, you might pay a higher interest rate or PMI (Private Mortgage Insurance), because the lender assumes a greater risk.  Consult a financial adviser about ways to raise the cash, like withdrawals from an IRA or gifts from your parents.  Each has tax implications, so proceed with caution.

With your financial house in order, you’re ready to discuss your desires with a Realtor® from Don Kingsley Real Estate and begin your home search in earnest.  Congratulations!

Phew!  After four years of declining home sales, the numbers appear to be finally turning back upward, with closed sales and pending contracts at above-normal increases.  In particular, first-time buyers helped buoy the market by taking advantage of low prices and interest rates, as well as the $8,000 tax credit offered by the federal government.

At least for now, home prices remain attractively low, and mortgage payments as they relate to income are very comfortable.  All the information seems to point to the fact that home prices have actually overcorrected downward.  What does that mean?  It indicates that many markets may experience a price “snap back,” with values increasing a lot more than the historical average of 4% appreciation per year.

Some factors may continue to make buyers cautious, mostly declines in retirement savings and a lukewarm economic recovery with unemployment hovering around 10% nationally.  Now is not the time to hesitate, however, as mortgage interest rates are expected to rise in 2010.

We can expect the momentum of home sales to continue, especially with the extension of the tax credit through April and the fact that qualification is no longer limited to just first-time buyers.  Prices and interest rates will rise this year, so buyer confidence should be at an all-time high.  The pressure cooker of pent-up demand is about to blow its top!

If you are looking to get in on the action and buy a house reaping the tax credit benefits or need to sell your home, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.