How the Appraisal Impacts Your Home Sale

Market value, appraisal value, what does it all mean? How do these numbers impact your home sale? The short answer is that the market value determines the price at which you list your home. This is the price that a buyer is willing to pay for your home in the current real estate market conditions. Your local Realtor will be able to assist in pricing your home to sell quickly.

The appraised value of your home comes from a report completed by a licensed appraiser. The appraisal is a part of most real estate contracts, as the buyer's lender will not award a loan on a home that is priced above the appraised value. Because of this, some sellers may choose to have an appraisal done on their home before listing it for sale. It's important to keep in mind that, as the market shifts, the appraised value of a home may not be its true market value.

In a buyer's market, when inventory is high and demand is low, the market value of a home will usually fall below the appraised value. In a seller's market, when inventory is low and demand is high, sellers need to be careful of pricing their homes over the appraised value.

If an appraisal comes in below the offer price, then there are a few options. The seller may decide to lower the price to the appraised value, or the buyer can bring extra cash to the table to purchase the home. The buyer's lender will not approve a loan on a home that is higher than the appraised value, so one way or the other, the money will have to be adjusted.

How to Prepare
Although many items that are covered in the appraisal are fixed within a home and the attached grounds, there are some things you, as a seller, can do to ensure your home is rated at its best value. Many of these things are also recommended when staging your home, so if you have taken those steps before listing, you will be ready to go.

• Clean up - A clean home will always make a better impression than a cluttered, dirty one. Cleaning your home also makes it easier for the appraiser to move about and get where he needs to go.
• Maximize curb appeal - Mow the lawn, tidy up the landscaping, and put a fresh coat of paint on that porch. Small maintenance items like these can go a long way in making a first impression.
• Feature your updates - Any permanent changes that you have made to the house should be documented and shared with the appraiser, if possible. This is especially important for less apparent updates like a new HVAC system or roof. The appraiser will appreciate having these pointed out to him.
• Show comparable homes - Your local Realtor should be providing you with current market updates before and while you are on the market, but if you don't have some comparable homes on hand, she should provide this for you and present it to the appraiser.

Are you buying a home in Northern Virginia this year? Contact Greater Cincy Homes today to get started!

Originally posted on www.sarahknobbs.com.

5 Ways to Protect Your Finances When Buying a Home

The search for your next home is always exciting, but it can often be filled with traps and pitfalls if you are not careful. Below you'll find 5 great ways to protect yourself in your next home purchase. Don't be a statistic; do your due diligence and get settled in a home that you can afford comfortably.

1. Be cautious about distressed properties
Many buyers seek out short sale homes or homes in foreclosure as a way to get a bargain on a new home. While some of these homes are still in good condition, many are not. It's important when you are considering a foreclosure or short sale home to do your homework. Be sure to hire a competent home inspector, and if major issues are found, hire a licensed contractor to analyze the problem and see if you can afford the fix. Even if a home is priced below market value, a fixer-upper can cost you more at the end of the day.

2. Watch out for overpriced FSBOs
Some buyers will talk to FSBOs (For Sale By Owner) because they want to cut out the Realtor commission and save themselves 3% on the price of the home. In theory, that could work, but many times FSBOs are actually priced higher than the market value because they haven't been priced by a professional. Be sure to talk to your buyers agent about the neighborhood values to ensure that you are not being wooed by an enthusiastic owner to pay too much for your home.

3. Don't borrow the full amount your lender offers
When you sit down to talk to a lender, they will review your financial situation with you to determine what you are able to borrow. They all have their systems in place that will give you a price they feel you can afford in the long-term. However, it's not always the best idea to shop at the top of your budget. While the lender knows a lot about your credit and expenses, they can't decide what monthly payment you are comfortable with. That needs to be a discussion between you and anyone else who is sharing that monthly mortgage payment with you.

4. Maintain a cash reserve 
Besides determining the amount of money you want to borrow to buy a house, you have to look at what liquid funds you have at your disposal. It's never a good idea to spend your entire savings on a down payment for a house. Keep a reserve available for taxes, utilities, repairs, and maintenance. Many homebuyers don't realize how much they will need to spend to move into a new home, especially first-time homebuyers. Keep your spending conservative with your home purchase, and you will be able to comfortably enjoy it for years to come.

5. Hire a strong buyer agent
This is perhaps the single best thing you can do to protect yourself when buying a home. A strong buyer agent will guide you through all of the above and more. They will make sure you see the best homes in your price range, and that you understand all of the costs involved in living there. A knowledgeable agent will know about the local HOAs, any special assessments, and they will be able to negotiate the best sales price for you. Don't sell yourself short; hire a strong buyer agent to help you and get to closing without the headaches.

Are you buying a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started!

Originally posted on www.sarahknobbs.com.

5 Tips for Selling a Greater Cincy Home in Winter

Many people say that spring and summer are the best times to sell a home. While each season has its advantages and disadvantages, winter is actually a great time to sell your home in Cincinnati and Northern Kentucky. Keep reading to get tips and advice to make your home stand out and get it sold for the best value in winter.

 

1. Dress up the front of your house to make it feel warm and inviting. Don't go overboard!  You want to make sure that you enhance the curb appeal of your home, not hide it. Strategically placed lights and greenery are often enough to create the idea of a welcoming home.  As in other seasons, you want to create that great first impression with curb appeal.

 

2. One of the biggest things is a simple one-- make sure to keep the house clean and all walkways clear of leaves, snow, and other debris. If buyers need to trek through a few inches of snow on the way into your home, or if they enter a kitchen with dirty dishes all over the counter, that sets the wrong tone for the showing.

 

3. Don't be shy with the light and the heat. When you sell a home in the winter, turn on all the lights before showings and open the blinds. Allowing more light creates a more welcoming atmosphere, and buyers will see your home at its best. Also be sure to keep your thermostat set at a comfortable temperature all day when you have a showing. Not only does a cold home make buyers feel uncomfortable, but they will also start questioning whether your HVAC system is working.

 

4. Something many do not consider when preparing a home for showing is providing sound, specifically music. You could put on jazz, classical, or any other music you feel wouldn't distract from the house. Having soft music in the background makes the home feel more alive, and buyers will be more comfortable moving around and evaluating the home.

 

5. Be sure to take advantage of the lower inventory in the wintertime and highlight the unique features of your home. Your Realtor should have all items of significance listed in the MLS and in their in-home flyer, but you might take the time to place a small notice outside of each room to point out the important features. If you have a new water heater, you might notate that outside of your utility room, or you could list the materials used in your beautiful kitchen renovation so buyers know exactly what they are getting.

Are you buying or selling a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started.

DIY Guide to Decluttering Your Greater Cincy Home

The new year causes many of us to reflect on the previous year and set goals to improve. For some, they decide to go to the gym more often or eat better. Others set work or professional goals to achieve.

This post is for the people who want to take back their homes from the clutter in the new year. Clutter often builds up slowly over time until you look around and wonder how it all got there. Fear not! There is a simple 3-step method to make it all go away.

Define Your Goals
Before beginning, you want to take the time to make a plan. Go through each room of your house and decide what needs to be done in each location. Track this either with pen and paper, or use something like Google Docs or Evernote to ensure you don't forget the details.

Once you know what has to be done, determine the priority of each area. Is your office overflowing with outdated paperwork? Are your kitchen cabinets bursting with cookware you never use? Decide which location will give you the most satisfaction when it is not full of clutter, and make that your #1 priority. Rank the other areas in relative importance from high to low.

The last (and often overlooked) part of goal-setting is choosing a timeline. If your kitchen is the first location to tackle, maybe you want to sort out all the old cookware by Sunday evening, so you can cook without the clutter through the workweek. Whatever the timeline is, make sure you stick to it so you complete the other items on your list.

Decide How to SortSorting as you go through the clutter is important. You can make your sorting process very simple by dividing everything you encounter into 3 categories: Keep, Trash, and Storage. 

Keep - these are items that you use on a regular basis that are functional or items that bring you joy. What does that mean? Anything that you can instantly recall the last time you used it and you know it works, keep it. If you have something that you would use if it wasn't broken, but it just sits on a shelf waiting for you to fix it for months and months, just get rid of it. An item that brings you joy could be anything from a sports jersey to a toy from your childhood to a family heirloom. These items might not be very practical, but their existence makes you happy.

Trash - If an item is broken and can't be easily fixed, trash it. If you haven't used something in over a year (and it's not a seasonal item), trash it. If you're keeping a horrible gift solely out of obligation to Great Aunt Mildred, trash it. Trashing it doesn't have to mean you fill endless garbage bags as you go through your house, however. Many items can be recycled or donated, or you could have a yard sale. 

Storage - For seasonal items, or for things with emotional significance that don't fit elsewhere in your home, storage is the way to go. Whether it's your own attic/basement storage, or you pay for a storage unit, take the time to organize what you store. Items that you pull out for holidays should be easily accessible. If you are keeping things because you plan to buy a larger house one day, those might not need to be as accessible.

Set Aside Time to Work
Even if it's only 15 minutes a day, or 1 hour on Saturdays, commit to that time. If you skip it, the clutter will stay. If you struggle with this, make it a game. Get someone to join you in the activity and make it a contest, or give yourself a reward for keeping to your schedule. However you do it, you just have to make sure that it gets done. The best reward to keeping to your schedule will be the new, clean look your home has when you are done. 

Thinking of selling a home in Northern Virginia in 2016? Contact Greater Cincy Homes today to get started.

East Side vs. West Side of Cincinnati

The long standing questions of "are you from the east side of Cincinnati or the west?" has been a head-scratcher for many non-native Cincinnatians. People relocating to Cincinnati find out quickly that there is a distinct difference in the culture of those from the East and those from the West.

Here is the best answer we could find regarding the East vs West conundrum:

Natives of the city see the west side as more conservative and dogmatic, where the east side is more transient and mobile. It is a known trend that there is the "born here -- die here" trend on the west side and residents there most likely live within miles of their high school. When on the west side, if someone asks where you went to school, they are most likely asking where you went to high school. On the east side they're likely to be asking where you attended college.

West-siders tend to have deeper family roots and be more thrifty with their money. Some have deemed the west side to be primarily blue-collar working class residents. East-siders are typically more liberal than the west-siders, enjoy the arts, and socially outgoing.

So where is the divider?

Many think the divider is I-75 running north and south dividing Hamilton County vertically and some think it is Vine Street and route 4.

So now you know the reasons behind the question you're bound to be asked when moving to Cincinnati - "Are you from the East side or the West side?"