What to Expect From a House Appraisal

Whether they are buying or selling a home, there will come a time when a person needs to enlist the services of a house appraisal. The home appraiser will come to the home and assess its market value so that the lender or the seller can find out the worth of a home to meet their needs. If you are the home owner whose home needs to be appraised, here’s what you need to know about getting your home ready for the appraiser’s visit.

Typical Length of an Appraisal

A house appraisal isn’t something that is going to take up your whole day. In fact, many house appraisals only take a few minutes to complete, although this can change depending on the size of the property. More property, more time. The appraiser is going to walk along the outside of your property and measure the square footage. This gives them a real measurement of how big the property may be. Then they will look around the inside, checking on how the features take up space and what, if any, renovations have been done to the home’s structure.

Cleaning Up Around the House

The home appraiser doesn’t care how clean the home is kept, unless it makes it easier or harder for them to see the space. They are measuring the property and the home, not its contents. You may want to make a good impression by having an orderly home, but having a cleaned up home won’t get you a better appraisal figure.

Listing Your Improvements

To boost your home value during a house appraisal, home owners often believe they need to point out all of the repairs and improvements they have made to the home. That isn’t needed. Appraisers are trained professionals who will certainly notice repairs and improvements. If they do miss anything, you may want to point it out, like new heating and cooling system.

You should also be prepared to answer questions that the appraisers may have while they are looking at your home. If you aren’t sure about repairs, have someone present who does have those answers for the appraiser.

The house appraisal process is much more passive than might be assumed. The home appraiser will come in, look around, measure and then leave. After they leave, they will also check on the market in your neighborhood and write up a detailed report. It is a quick and easy process, which helps find out the fair value of your home in order to help you with buying, selling, or refinancing

A Real Estate Formula

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439

Summary:
A great real estate formula? There are many. This one is for when you already have some capital and want a great return.

Keywords:
real estate formula, real estate, real estate investing

Article Body:
It was a simple real estate formula. The ads ran in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. Maybe a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments.

When a friend started doing the same thing he explained the process to me. It was a way to get a great return on capital, and it was the opposite of buying with no money down. There is no down payment at all when you buy, because you buy for cash.

The Simple Real Estate Formula

You probably know that when you buy for cash, you can often get a much better price. With no financing contingencies in the offer, and the promise of a faster closing, sellers are willing to sell for less. You can offer $95,000, for example, on a house that might be worth $108,000. If you can’t get it for less than, say, $99,000, you walk away – there are always other opportunities.

Once you buy the house, you put few thousand into high-return repairs and improvements. These might include paint, carpet, and maybe asphalt for a dirt driveway. For our example, we’ll say you spend $5,000. Let’s suppose the house is worth $116,000 now. You’re ready for the next important step in this real estate formula.

You put it up for sale, targeting buyers who can’t get financing easily. You provide the financing. Because you are making it easy for the buyer, you can get more than the $116,000 value for the home – and do it without paying a realtor’s commission. Let’s say you sell it for 123,000. The buyer needs a down payment of just 5%, or $6,150, and makes monthly payments of $1230 per month. You charge higher interest than the going rates at the banks, of course.

This is a win-win situation. Your buyer is able to buy a home instead of renting, and you get a capital gain of perhaps $16,000 after expenses, plus good interest. Your total rate of return will often be over 20%!

In our town, the first to do this consistently were a father and son team of lawyers. They saved money by doing their own foreclosures when necessary. Once they foreclosed, they raised the price and sold the home all over again.

They made millions. Did you know that if you can get an average return of 18% on your money, you’ll turn $75,000 into more than one million dollars in about fifteen years? That’s the power of a good real estate formula.

When it comes to making money in the business of flipping houses and other real estate investments you will find all kinds of do’s and don’ts along the way. The truth of the matter is that these are extremely useful whether this is your first house flip or you have been flipping houses for years. In fact you might just find that you can learn something new on occasion by reading lists such as this even if you’ve been flipping houses for years and have many successful flips under your belt.

1) Don’t forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also take the time to make sure that the plan you have in mind for the property will match well with the other neighborhood residents in order to guarantee a quicker sale.
2) Don’t blow your budget without just cause. Your budget is what you used to determine whether or not the house would be a profitable venture. If you blow your budget and cannot recover the extra money you’ve spent in the selling price on the house you will have seriously cut into your profits if not eliminated them all together. The goal in property flipping is to get in and out quickly and spend as little money as possible in order to make as much money as possible.
3) Don’t forget to set daily goals and hold yourself accountable to those goals. If you don’t reach your goals for the day it can set the entire project back by as much as a month depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don’t neglect the exterior. Curb appeal is what brings buyers into the property. If you spend all your money, time, and effort making improvements to the exterior of the home you will have little left to make the outside appealing to potential buyers. A homebuyer is in the market for the entire package. A home that looks run down on the outside leaves the impression of being neglected on the inside and many potential buyers will never walk inside if the outside looks forlorn.
5) Don’t spend money you don’t need to spend. While it would be great to put in granite countertops and gourmet kitchens into every home it isn’t always practical and this is often money that will not be recovered, particularly in homes that are in marginal neighborhoods. If you want to get the most for your money avoid costly expenses that aren’t exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, and add a few cosmetic touches before moving on.

The market for real estate is a very fickle market. Avoid risking too much time and money on a property that isn’t going to recover those added touches and expenses. Instead hold onto those ideas for higher end flips once you have a few successful flips under your belt.

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All new things can be a little frightening or intimidating at first glance. The same is definitely true when it comes to flipping houses. Many people feel several times during their first flip that they have gotten in over their heads. The truth is that it will take more than a few flips to feel comfortable with the process. Most people make very little, if any real profit on their first flip and write it off as a learning experience only to enter into the next flip with newly learned lessons and a positive attitude. Learning the ABCs of flipping houses is a great place to begin and can help you avoid costly mistakes made by many first time flippers.

1) Appraise. You need to have a proper appraisal performed on the house you intend to flip and compare it to other houses in better condition and of similar size and style within the neighborhood. You do not want to buy the best house in the neighborhood, in fact it is best if you can find the neighborhood eyesore and turn it into a competitive house for the neighborhood in order to get the most for your money. More importantly you want the appraisal to reveal the actual value of the home now as compared to the price you are paying and talk to the appraiser about what the home would be worth the with improvements you are planning to make.
2) Bold Moves. Sometimes it takes bold moves to make the impression you want to make. The decision to flip houses is a bold move in and of itself and while you do not want to necessarily enter into risky waters you do not want to play it too safe either. Be cautious with your financing and guard your expenses and your budget well but make the changes that will catch the eye of the next owner for the property.
3) Can do Attitude. You absolutely must believe you can do this in order to get it done. A house flip is not an undertaking for the timid or those that lack self-confidences. You will need to stand up to your contractors, inspectors, and even some vendors in order to get the best price and the most bang for your buck. In other words you need to believe in yourself and what you are doing in order to get it done. This doesn’t mean you shouldn’t listen to the advice of those with more experience and expertise, especially when it comes to structural issues within the home and bringing the property to code but you also need to stand up for yourself to insure that you aren’t paying for things you aren’t getting.
4) Determination. You must also be determined to see your project through to completion. It takes a certain sort of pigheadedness to get through the first few flips. It should be stated here that flipping houses is certainly not an easy way to make a living. It does have the potential however, to be a highly profitable way to make a living and that is what most potential flippers are looking for. If you want those profits you are going to need to push yourself out of bed even on those mornings when you feel as though looking at the property in question is going to make you wail and moan and pull out your hair.
5) Excitement. This may be the most necessary of all ingredients. You will find that excitement is in short supply many days but it if you can recapture that initial excitement over your decision to flip houses then it will sustain you on those days when the plumber brings bad news or you just learned that a solid weak of rain is forecasted for the weak the roof was to go on.

This is a small start on the ABCs of house flipping and real estate investing but I think you get the picture. Good luck!

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While many people have very specific dreams of enjoying the bountiful profits that can be made from flipping houses very few people put too terribly much thought into the process or any formulas that might be pertinent to success when it comes to flipping houses as a real estate investment venture or for the sake of building a nice comfortable lifestyle or retirement. You will hear a lot about the things not to do when it comes to flipping houses but very few people take the time to mention the things you absolutely must do in order to successfully flip a house and thus begin your ride on the road to real estate investment riches.

1) Do put everything to pen and paper and plan it out carefully before you begin. If you are going to enter into this to make money you need to treat it like a business. This means you need to have a plan of action and make every effort to work towards carrying out that plan.
2) Do establish a budget for the entire project. You need to have a plan for how much money you are willing to invest in the property itself, how much for renovations, and how much money you need to make in order to be a worthy investment for your time and labor. A house flip is a lot of work in order to pull it off successfully. You want to have a good idea of how much homes in the neighborhood are worth, the value of your property as is and the estimated value of the property once improvements are made. In addition you should also have a pretty firm grasp of the costs involved in making the repairs in order to create a realistic budget for the entire project.
3) Do have an inspection. This is the single most important detail that can save you a great deal of time, money, and heartache when everything is said and done. Be prepared to walk away if the inspection determines that there is more work needing to be done than simple cosmetic repairs. You want to make changes that people can see because those are generally the changes that drive up the cost of the house. You want to avoid needing to make changes and improvements that aren’t visible but are very necessary. If you need to invest a lot of money and labor into the house you need to seriously consider the realistic profit potential the property offers. If it isn’t significant then you need to walk away before the property becomes a real estate investment money pit.
4) Do know the neighborhood and plan your flip according to the needs of the area rather than your personal tastes and needs in a home. This is another thing that many first time flippers forget. This is not a personal project it is a business project and you need to treat it as such. Keep costs down and feelings out.
5) Do remember that you are in the market to make money not waste money when it comes to establishing an asking price for the property. You’ve poured blood, sweat, and probably more than a few tears into your flip but you cannot set the value of the property by the effort you’ve placed into it. Have realistic expectations of how much you stand to earn from your efforts and how much you are willing to go down on the price in order to walk away with some profit in your pocket.

You should also take a moment to reflect upon the fact that many first time flippers actually lose money on their first flip. If you turn a profit at all, even a small profit you have learned many valuable lessons that you can carry with you into future flips and make more money. More importantly the lessons you learn from your first flip are lessons that money really cannot buy so it is worth a lower profit or even taking a slight hit if your experience makes you even more money in the future as you continue along your real estate investment path.

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When it comes to real estate investing a house flip is a great way to go. It’s also a rather bold move for many who are considering this as a first time real estate investment. At the same time you can minimize the risk while maximizing the profit potential by following a few guidelines.

1) Have an inspection. For whatever reason there are many people who enter into a property flip situation without ever having a valid and complete inspection of the property made. This means you could be doing work that will need to be undone at some later point in the process. You want to avoid this situation if at all possible and it is easily done (in most cases) by having a thorough inspection. There will almost always however be some unanticipated surprises along the way.
2) Establish a budget and stick with it. Most people flipping houses plan a budget. Unfortunately, for whatever reason, very few actually stick to the budget they originally established. It is a good idea to leave a little wiggle room in your budget for unexpected emergencies but be firm on the spending limits for specific projects. If you go over on those projects eliminate something elsewhere in order to save money.
3) Consider the target buyer when making adjustments. You must understand when purchasing a house to flip that you are buying the house for someone else and you need to make adjustments, changes, and improvements according to what your target market demands, expects, and can afford to absorb the costs of you adding. It doesn’t matter how beautiful you’ve made the house if no one that is willing to live in the neighborhood can afford your asking price when all is said and done.
4) Remember that this is a business situation and don’t refuse to consider offers that will net you a profit just because the profit isn’t as good as you’d like. A house sitting empty on the market accrues carrying costs and is ripe for all manner of disasters. You want to get in and out as quickly as possible so that you can free up your investment to move on to the next project. Entertain all offers seriously even if they aren’t what you were hoping for. You never know when one might be the best you’re going to get.
5) Don’t take it personally. Once again a home is a very personal thing to most people. While you may have worked very hard selecting colors, materials, flooring, etc. not everyone is going to share your tastes. Do not alienate potential buyers by attaching personal emotions into the mix and getting angry because they do not appreciate your hard work. I hate to add this but it happens a lot more than you might think when flipping houses.
6) Spend as little money as possible while making bold changes. This is the best way to maximize your profits. You want the changes to be visible and effective. Don’t overlook the value of curb appeal you need to put serious effort into improving the exterior of the home as well as the interior because this is what people will see first and the change that will invite them to take a look at what you’ve done inside.

Little changes make a big improvement in the value (especially the perceived value) of a home. Make the necessary changes and sell the house as quickly as possible in order to bring in the best possible profits.

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So just in case you have been living off the land in the middle of the Amazon these last couple of years, here in South Carolina it is definitely a buyer’s market and although this is great news for buyers, it is bad news for sellers. There is nothing worse than putting your house up for sale and watching it sit on the market with all the other bazillion pieces of real estate. This is a very common problem these days in this down real estate market. So, what should you do now? Should you give up your dreams of selling? Wait for the market to rebound? Well, here are a few tips to help you sell your house fast here in Charleston, Dorchester or Berkeley County.

The following tips may help you sell your house quickly, but we need to cover something first. If you have some type of defect with your house, it is going to have to be repaired to sell it to a retail (owner occupant) buyer. There is a difference between making small repairs that prevent a sale versus having a major problem like a cracked foundation or severe termite damage. These tips will only help if your home is in reasonably good shape when compared to those houses selling in your neighborhood. If you have major problems with your house, a buyer will not be able to get a loan and you will therefore be better off selling to a reputable cash buyer like Charleston Home Buyers, LLC that can buy your property quickly “as is” without any bank financing needed.

1. PRICE – Hands down, the number one thing involved in selling your house fast is the price. The price of your home should not be what you personally think it is worth or what that little voice inside your head tells you that you deserve since you “put all that money into improvements……like your new in ground pool”. Buyers simply don’t care about what you paid for your house a few years ago or that you put the best stain-resistant carpet you could buy throughout the house. If you’re asking how do I sell my house fast in this market, the bottom line is that you have to set a price that is very attractive to buyers. The best way to do this is to look for comparable houses in your neighborhood that sold fast. Note I said sold, not what they are currently listed for. Asking price is just that….an “asking” price. And all it means to you is that your price should be below theirs if you want a buyer to choose your home over theirs. Find out how much the homes sold for and compare your price to the prices the other houses sold for while taking into consideration their square footage vs. yours. If you are above those prices, you need to take a deep breath, bite the bullet and lower your price. When it comes to pricing your house for a fast sale, overpricing it in the beginning to just “test” the market will only bite you in the end when you have to chase the market prices downward, your house gets stale to the market and buyers wonder what’s wrong with it. Just follow the lead of others in your area and make sure your home is the best priced and if at all possible the nicest as well. Which leads us to tip number 2 (subscribe to our feed for tips 2 and 3 coming shortly).

Price is just one of the things you can do to try to get your house sold quickly. However, if you’re sick and tired of waiting for your house to sell, have a difficult situation or perhaps just don’t want to deal with the hassle of having to have your home in tip-top shape, and constantly clean in case of unexpected showings that never seem to happen, then selling your home to a professional home buyer like Charleston Home Buyers, LLC may be a great idea. There are many advantages to selling to a local real estate investor: There will only be one showing. They are cash buyers which means you won’t have any surprises the day of closing [after you have the moving truck packed] when your realtor calls to tell you the buyer’s financing fell through. You won’t have to clean or make any repairs. They buy real estate “as is” so you won’t have to worry about your buyer backing out because their home inspector says there are “problems” with the house. It also allows you to go shopping for a new home because you know that you have a solid buyer with very few contingencies ready to cash you out now or whenever is convenient. Another advantage is that they are very adept at handling many difficult situations such as: foreclosure, bankruptcy, divorce, probate and inherited property, vacant houses, tired landlords, short sales, multiple lien holders, lost job and behind on payments, needs repairs and updating, already moved and making two mortgage payments, listing is expired, no equity and you can’t afford to continue paying. These are common problems that can happen to anyone. Charleston Home Buyers specializes in finding creative win-win solutions to real estate problems that others won’t touch.

To find out more how you can sell your house “as-is” for a fair price on the date of your choice, get our FREE REPORT “How to Sell My House Fast”. If you are falling behind on payments or facing foreclosure make sure you get our FREE REPORT “How to Stop and Avoid Foreclosure“. If you need to sell your house quickly, please submit your property information via the “Sell My House” form at our website today for a Free, Confidential, No-obligation offer or call our toll free 24 hour recorded message at 888-52-BUYER (888-522-8937) for more information about selling your home to a professional house buyer. You can also always call us direct at 843-72-BUYER (843-722-8937), however we recommend that you take 5 minutes to fill out our property information form first so that we can save you time by having the information we need to get you an offer right away.

Copyright © 2009 Charleston Home Buyers, LLC. All rights reserved.

When it comes to buying foreclosures, every investor needs to be aware of certain aspects that can either make or break their bargain. The appeal of a foreclosed property is often found in the hidden potential that a home is thought to possess, but the fact that it can be purchased at a price that is often far less than the current market value is an equally attractive incentive to most buyers. While foreclosed properties can and often do produce a profitable return for investors, it’s important to keep the following in mind when perusing properties:

- Not every foreclosure is open to inspection. This means that you may or may not be able to view or evaluate the property, and could be required to make a decision based on nothing more than a visual and any information provided in the foreclosure listing.

- If a foreclosed property is open to inspection, it will be up to potential buyers to hire an inspector for the purpose of evaluating any necessary repairs or improvements. This will aid investors in the decision as to how much money they wish to pay for a property by giving them an indication of the work and cash needed to restore it.

- If you plan on buying foreclosures while they are still inhabited, either by the previous owners or renters, you will be responsible for removing them. In some cases, eviction may even be necessary.

- Buying foreclosures means purchasing a property ‘as is’ with no guarantee as to its condition.

- Investors who plan on buying foreclosures from HUD are permitted to enter the bidding process if no person(s) wish to bid as an owner-occupant. The initial phase of a HUD foreclosure auction is open only to those who wish to live in the home.

- Each state handles the process of buying foreclosures differently, but nearly every one offers a redemption period that would allow the former owner to regain control of the property by catching up on payments and interest. Buying foreclosures means that you need to be aware of local laws and how they may affect the ownership of a property.

- If you require financing, it’s important to check with a lender to arrange for a mortgage before placing a bid on a foreclosure. In at least one respect, buying foreclosures is similar to the purchase of other real estate in that the failure to complete the transaction may result in the loss of any earnest money provided.

- Prior to buying foreclosures, or any other type of real estate investment, do your homework. Homes built before 1978 may contain lead paint, which is why it’s important to learn as much as possible about the home’s age and condition, along with other potentially concerning aspects of real estate before signing on the dotted line.

- Successfully buying foreclosures as an investor means knowing the current market value for comparable properties in the area. If you plan to restore the home, you will need to figure in the cost of repairs and calculate a reasonable selling price in order to determine a feasible profit.

- Investors considering buying foreclosures can find local listings through realtors, lenders, the U.S. Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA) and various other public auctions.

The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal, financial and/or investment advice regarding buying foreclosures. For additional information, consult an attorney who specializes in real estate and/or financial matters.

So just in case you have been living off the land in the middle of the Amazon these last couple of years, here in South Carolina it is definitely a buyer’s market and although this is great news for buyers, it is bad news for sellers. There is nothing worse than putting your house up for sale and watching it sit on the market with all the other bazillion pieces of real estate. This is a very common problem these days in this down real estate market. So, what should you do now? Should you give up your dreams of selling? Wait for the market to rebound? Well, here are a few tips to help you sell your house fast here in Charleston, Dorchester or Berkeley County.

The following tips may help you sell your house quickly, but we need to cover something first. If you have some type of defect with your house, it is going to have to be repaired to sell it to a retail (owner occupant) buyer. There is a difference between making small repairs that prevent a sale versus having a major problem like a cracked foundation or severe termite damage. These tips will only help if your home is in reasonably good shape when compared to those houses selling in your neighborhood. If you have major problems with your house, a buyer will not be able to get a loan and you will therefore be better off selling to a reputable cash buyer like Charleston Home Buyers, LLC that can buy your property quickly “as is” without any bank financing needed.

1. PRICE – Hands down, the number one thing involved in selling your house fast is the price. The price of your home should not be what you personally think it is worth or what that little voice inside your head tells you that you deserve since you “put all that money into improvements……like your new in ground pool”. Buyers simply don’t care about what you paid for your house a few years ago or that you put the best stain-resistant carpet you could buy throughout the house. If you’re asking how do I sell my house fast in this market, the bottom line is that you have to set a price that is very attractive to buyers. The best way to do this is to look for comparable houses in your neighborhood that sold fast. Note I said sold, not what they are currently listed for. Asking price is just that….an “asking” price. And all it means to you is that your price should be below theirs if you want a buyer to choose your home over theirs. Find out how much the homes sold for and compare your price to the prices the other houses sold for while taking into consideration their square footage vs. yours. If you are above those prices, you need to take a deep breath, bite the bullet and lower your price. When it comes to pricing your house for a fast sale, overpricing it in the beginning to just “test” the market will only bite you in the end when you have to chase the market prices downward, your house gets stale to the market and buyers wonder what’s wrong with it. Just follow the lead of others in your area and make sure your home is the best priced and if at all possible the nicest as well. Which leads us to tip number 2 (subscribe to our feed for tips 2 and 3 coming shortly).

Price is just one of the things you can do to try to get your house sold quickly. However, if you’re sick and tired of waiting for your house to sell, have a difficult situation or perhaps just don’t want to deal with the hassle of having to have your home in tip-top shape, and constantly clean in case of unexpected showings that never seem to happen, then selling your home to a professional home buyer like Charleston Home Buyers, LLC may be a great idea. There are many advantages to selling to a local real estate investor: There will only be one showing. They are cash buyers which means you won’t have any surprises the day of closing [after you have the moving truck packed] when your realtor calls to tell you the buyer’s financing fell through. You won’t have to clean or make any repairs. They buy real estate “as is” so you won’t have to worry about your buyer backing out because their home inspector says there are “problems” with the house. It also allows you to go shopping for a new home because you know that you have a solid buyer with very few contingencies ready to cash you out now or whenever is convenient. Another advantage is that they are very adept at handling many difficult situations such as: foreclosure, bankruptcy, divorce, probate and inherited property, vacant houses, tired landlords, short sales, multiple lien holders, lost job and behind on payments, needs repairs and updating, already moved and making two mortgage payments, listing is expired, no equity and you can’t afford to continue paying. These are common problems that can happen to anyone. Charleston Home Buyers specializes in finding creative win-win solutions to real estate problems that others won’t touch.

To find out more how you can sell your house “as-is” for a fair price on the date of your choice, get our FREE REPORT “How to Sell My House Fast”. If you are falling behind on payments or facing foreclosure make sure you get our FREE REPORT “How to Stop and Avoid Foreclosure“. If you need to sell your house quickly, please submit your property information via the “Sell My House” form at our website today for a Free, Confidential, No-obligation offer or call our toll free 24 hour recorded message at 888-52-BUYER (888-522-8937) for more information about selling your home to a professional house buyer. You can also always call us direct at 843-72-BUYER (843-722-8937), however we recommend that you take 5 minutes to fill out our property information form first so that we can save you time by having the information we need to get you an offer right away.

Copyright © 2009 Charleston Home Buyers, LLC. All rights reserved.