In the Boston area there are significant numbers of both new and traditional housing. There is also a hybrid of the two – old houses that have been gut-rehabbed. Understanding the key differences is helpful to buyers, sellers, and owners alike. Buyers can use the understanding to evaluate the trade-offs between the different types of housing. Sellers gain insight into the competition. And owners can use the information to make informed decisions about when, if, and how to invest in upgrades and renovations to their home with an eye towards the ultimate resale value.
When you apply for a mortgage, the bank has a professional appraiser perform an appraisal of the property. The question today is: what if the appraisal comes in lower than the price you have agreed to pay? And the answer, like the answer to many questions, is: “It depends”. Mostly, it depends on what it says in the mortgage contingency that was part of your offer.
For the purposes of this discussion we will use – as an example – that:
– you have agreed to pay $600k for the property.
– the bank will lend you up to 80% of the appraised value – which is standard.
Spring is the season when many people tend to buy and sell real estate. Much like spring cleaning…a lot of people do it. Of course, with cleaning, people aren’t impacted by the number of people who decide to do it in the spring. But with real estate, the number of people looking to buy and sell impacts everyone in the spring market.
Here are snapshots of real estate activity in selected Greater Boston Area communities for 2018: Newton, Needham, Roslindale, and West Roxbury. You can see how some key indicators in 2018 compare to 2017 activity. Specifically, there are graphs that show the number of houses sold for each of the two years, the average sale price, and the average days on market, We’ll also take a quick peek – before we close – at anticipated activity in 2019.
Owners who try to sell their home without an agent are frequently successful in getting a signed contract from a buyer for an acceptable price. Unfortunately – all too often – they learn the hard way about the number of problems that can come up and interfere with getting to “SOLD”. A contract that doesn’t close typically has a negative impact on the purchase price of the next offer…future buyers tend to be very suspicious of why the first offer didn’t get to “SOLD”. Here are some of the many ways that a good agent can help you navigate through the sea of problems and get you to “SOLD”.
If you apply for a mortgage for your home purchase, the bank or lender will require an appraisal of the property. Here is a list of some basic questions and answers about appraisals. For the sake of simplicity, we will assume the most typical scenario: the appraisal is for a mortgage for 80% of the purchase price, and you will be covering 20% of the purchase price from your own money. If you need to borrow more than 80%, or have enough of your own money to borrow less, the basic concepts are the same but. there are some significant differences. We will cover the less typical situations in future posts.
There are many things that need to be addressed before property showings. For the most part, these things involve using common sense, for example, removing bad odors and unsightly messes. It is simply a matter of addressing all the things that can interfere with a buyer’s falling in love with your property and making a … Continued