Why Most Clearwater FL Homes for Sale Won’t survive Naked Appraisal
Clearwater Florida - I wanted to take some time out of selling homes and share some crazy things I’m hearing and seeing on the streets. I’ve apologize because I’ve gotten behind on my articles. This is our busiest time since when it’s cold everywhere else, Florida homes and beach condos are even more appealing (I have to agree). We are seeing things changing so rapidly here and I needed to make sure I took the time to keep you updated on what’s really happening in the Clearwater real estate market. I can promise you fact is currently more interesting than fiction. Today I want to share whats happening with luxury beach homes for sale based on our recent experiences. You may find we offer a unique local perspective because we specialize in serving only buyers in the luxury home market. In fact, the last 60 days alone our team has successfully helped 8 buyers purchase Clearwater FL homes for sale and what we’re seeing out here may surprise many of you currently in the market to purchase a property in the Clearwater area. Part of our purpose today is also to help educate you as well as local home sellers who we hope will actually hear our message..”If your home is overpriced it won’t survive the appraisal – so it won’t be sold!!”
Reflecting on some of the crazy things we’ve seen and heard reminded me of the story we all learned as a child of "The Emperor New Clothes."
Remember the story by Han’s Christian Anderson (source: Wikipedia), where “An Emperor who cares for nothing but his wardrobe hires two weavers who promise him the finest suit of clothes from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”. The Emperor cannot see the cloth himself, but pretends that he can for fear of appearing unfit for his position or stupid; his ministers do the same.”
I keep running into the same mindset with local sellers and listing agents in different situations who in my opinion seems afraid to deal with the truth. Everyone seems to be pretending their home’s list price is really the home’s value today…whether we’re negotiating Clearwater Beach Condos or Clearwater Homes for sale, the story is the same – listing agents and home sellers who want to deny the real estate market facts and “hope” their home will sell for yesterday’s prices. While buying a home is an emotional purchase, financing is based on facts not feelings.
We are also surprised to find some of the best Clearwater FL Realtors we know and their home sellers telling to us all the reason’s why they feel their client’s home is “the finest”, “the exception” and almost acting like we might be “the foolish ones” and that we must not really understand or appreciate “this home’s value” and the market. [Not] I’ll even ask them what I’m missing? Please show me the data that backs up this price. Well I’ve yet to get any real data to change the facts all I get are “marketing bullets” and “emotions” but like the clothes on the Emperor- We can see right through it the naked facts…their desired asking price won’t stand up to an HVCC Appraisal.
Sellers seem like Realtors who will tell them what they want to hear – but is that really in their best interest? Their Realtor can even make them feel good temporarily by telling them they see ‘their fine emperor’s new clothes”. Now the seller’s pumped up and the agents get ready to “strut there stuff” with fancy brochures, marketing and explanations why other nearby homes that sold for less in the last 90 days but they don’t believe it will effect their homes value because those were:
* short sales,
* foreclosures,
* not updated,
* smaller,
* not on the same street,
* (or…plug in your favorite reason here)
I can only guess they are in denial about the facts…because everyone wants to believe their listing agent can sell “the invisible clothes” as well as their home to some gullible unsuspecting home buyer. Here’s the truth, the appraiser is going to use homes that sold within the last 90 days, in the same neighborhood, with the same characteristics and up to about 50% size difference. The more closely they relate the better for example waterfront to waterfront, pool home to pool home, 3 bedroom to 3 bedroom. However with so few sales they will use the best they can find with most recent solds meaning ALOT! Now that you know the truth what will you do with it?
Ideally the wishful seller and their agent will have potential buyers call them off the sign in the yard or contact the listing agent directly because then that buyer won’t be represented by a their own Realtor. This can give the home seller’s agents the advantage and opportunity to give them a private showing of these “amazing fine clothes” and sell them on why they just have to have it at or near the asking price.y
The emperor’s new clothes don’t work when dedicated buyer’s agents, like us, enter the picture with qualified serious buyers who are represented and we tell them the truth the whole truth nothing but the truth. When these buyer’s like your home and want to make an offer we find this is where the real trouble begins. The seller’s (often because in my opinion they haven’t heard the truth) feel frustrated and even angry because they really believe “their home is special” and it will definitely appraise for that price even though all the recent comparable homes sold says differently. Yes, your home is special to you and even to this buyer (that’s why they want to buy it) but it’s not worth whatever price you may be emotionally attached to and it’s not exempt for today’s HVCC Appraisal process which is based a lot more on science and less art in my recent experiences and I am seeing appraisals that are much more conservative than ever.
It was so refreshing today to read an article by Julia Fishel, a successful Palm Harbor Realtor who wrote an article that was so dead on I wanted to share some of it here…
Julia and her team market homes for home sellers and more importantly…they actually are successful selling those homes [I can only imagine some of the uncomfortable conversations she must have to have with some of their sellers - real professionals don't pretend to see "invisible clothes" or wish for "unrealistic prices" - they educated their clients and empower them to make the best decisions in any given market].
Thursday, June 16, 2011
Wednesday, June 15, 2011
Clearwater FL Homes for Sale Haunted for Months by FHA Appraisals
Selling your Clearwater FL Home Beware FHA Appraisals Carry 4 Month Penalty
Clearwater Florida - Dear Mr./Mrs. Home seller today there almost 3000 Clearwater Fl Homes for sale. I would guess that most sellers don’t realize that after January 2010 FHA appraisals now have a 4 month shelf life. So while it’s not officially a penalty, you tell me, because now when you get what you think is a “low appraisal” on your home using the new HVCC appraisal process you may be tempted to not sell to the current buyer because the appraisal says it’s currently worth less than you believe. You may be tempted to say find I’ll let this buyer out of the purchase contract and just put your house back on the market for sale hoping to get another buyer and a better appraisal.
Well…Did you realize that the lending rules have changed and now any other potential buyers for your home for sale in Clearwater that are going to get an FHA or VA loan (which is the majority of home loans done under $300,000 in the Tampa Bay today HAVE to use that same appraisal – remember…the one you hated and just wanted to forget about?
Why? Because when a buyer is getting an FHA loan and an Appraisal / Case# is assigned – that Case# stays with that house. If a valid appraisal exists – that’s what’s going to be used so now that appraisal will actually now stay with your home for 4 months.
So now you can see that regardless of what future buyers WANT to offer you for your home for sale in Clearwater they can’t and still get an FHA loan for anything more than the value given in the original appraisal.
So the bottom line Mr./Mrs. Home Seller is that no matter how much buyers really do love your house or condo - our buyer’s can’t and won’t purchase overpriced Clearwater Fl homes – and your fantasy price won’t make it through the appraisal process (with ANY buyer) so if you really want to sell, please listen to what the real estate market sold homes in Clearwater (in the last 90 days) are telling us…and price your home realistically.
If you are considering buying a home in Clearwater, this is just one of the many areas we help with and why we believe you benefit from having your own representation in this process. We believe you deserve an advocate as well as all the current information available to determine a home’s value right now. We provide extensive analysis and advice to the buyers we work with based on our knowledge and experience so you can make strong offers. This can prevent you from overpaying as well as enabling you to get the home of your dreams that’s priced right as well as not risking losing $1000+ educating the home seller about his home’s value by doing home inspections, appraisals and more only to find out you can’t buy the home cause the bank won’t finance the home and the seller won’t seller for less and is actually stuck in denial.
I could go on forever with more real life real estate stories and will share more in the coming weeks – knowing that home sellers have an agent representing them – don’t you deserve the same when you plan to buy your home or beach condo?
Clearwater Florida - Dear Mr./Mrs. Home seller today there almost 3000 Clearwater Fl Homes for sale. I would guess that most sellers don’t realize that after January 2010 FHA appraisals now have a 4 month shelf life. So while it’s not officially a penalty, you tell me, because now when you get what you think is a “low appraisal” on your home using the new HVCC appraisal process you may be tempted to not sell to the current buyer because the appraisal says it’s currently worth less than you believe. You may be tempted to say find I’ll let this buyer out of the purchase contract and just put your house back on the market for sale hoping to get another buyer and a better appraisal.
Well…Did you realize that the lending rules have changed and now any other potential buyers for your home for sale in Clearwater that are going to get an FHA or VA loan (which is the majority of home loans done under $300,000 in the Tampa Bay today HAVE to use that same appraisal – remember…the one you hated and just wanted to forget about?
Why? Because when a buyer is getting an FHA loan and an Appraisal / Case# is assigned – that Case# stays with that house. If a valid appraisal exists – that’s what’s going to be used so now that appraisal will actually now stay with your home for 4 months.
So now you can see that regardless of what future buyers WANT to offer you for your home for sale in Clearwater they can’t and still get an FHA loan for anything more than the value given in the original appraisal.
So the bottom line Mr./Mrs. Home Seller is that no matter how much buyers really do love your house or condo - our buyer’s can’t and won’t purchase overpriced Clearwater Fl homes – and your fantasy price won’t make it through the appraisal process (with ANY buyer) so if you really want to sell, please listen to what the real estate market sold homes in Clearwater (in the last 90 days) are telling us…and price your home realistically.
If you are considering buying a home in Clearwater, this is just one of the many areas we help with and why we believe you benefit from having your own representation in this process. We believe you deserve an advocate as well as all the current information available to determine a home’s value right now. We provide extensive analysis and advice to the buyers we work with based on our knowledge and experience so you can make strong offers. This can prevent you from overpaying as well as enabling you to get the home of your dreams that’s priced right as well as not risking losing $1000+ educating the home seller about his home’s value by doing home inspections, appraisals and more only to find out you can’t buy the home cause the bank won’t finance the home and the seller won’t seller for less and is actually stuck in denial.
I could go on forever with more real life real estate stories and will share more in the coming weeks – knowing that home sellers have an agent representing them – don’t you deserve the same when you plan to buy your home or beach condo?
Tuesday, June 14, 2011
Clearwater FL Homes for Sale - Improvements that Increase Clearwater Homes Value
If you have a Clearwater Fl home for sale, just know that not all home improvements are created equal. Especially if you’re looking for “resale value” back from your improvements.
A recent from the Wall Street Journal lays it out cleanly. Function beats flash these days so be wary of where you spend.
A national report found environmental upgrades such as home insulation and energy-efficient steel entry doors are recovering a much greater percentage of their cost these days than major remodels including kitchens or bathrooms. This is especially true for homes that are already “over-improved” relative to the neighborhood.
Tip: Upgrading the biggest and best homes on the block can be a losing proposition when if comes to resale so if you upgrade your home do it to enjoy it while you’re in it not to get a financial benefit in the short run.
The article’s findings include data from groups such as the National Association of Home Builders, Remodeling Magazine, and Consumer Reports. It lists the following home improvements among its top “paybacks”:
* Steel entry door replacement : 129% cost recovery
* Wood deck addition : 81% cost recovery
* Vinyl-replacement window : 77% cost recovery
Energy-efficiency projects also recoup costs monthly in the form of lower heating and cooling bills. Locally we are also seeing things like new windows and roofs being important because of the impact they have on our insurance bills and the fact that those improvements come with significant insurance rate credits - some people see 20%+ drops - that’s real dollars for 5 years.
Remodeling Magazine says a larger number of homeowners will remodel their homes in 2010 with less emphasis on upgrading kitchens and bathrooms, and more emphasis on adding new rooms. From an appraisal perspective, this is a terrific way to increase your home’s value — especially if your home’s bed/bath count lags your neighbors.
Before starting a Clearwater Fl home improvement project, regardless of whether your goal is increase resale value, talk with a Clearwater Fl real estate agent about other homes in the area and how they’re built and what home buyers are looking for. At worst, you’ll gather some ideas you can work into your plan. At best, you’ll keep yourself from over-improving - which many home sellers are suffering from during this post real estate boom time.
A recent from the Wall Street Journal lays it out cleanly. Function beats flash these days so be wary of where you spend.
A national report found environmental upgrades such as home insulation and energy-efficient steel entry doors are recovering a much greater percentage of their cost these days than major remodels including kitchens or bathrooms. This is especially true for homes that are already “over-improved” relative to the neighborhood.
Tip: Upgrading the biggest and best homes on the block can be a losing proposition when if comes to resale so if you upgrade your home do it to enjoy it while you’re in it not to get a financial benefit in the short run.
The article’s findings include data from groups such as the National Association of Home Builders, Remodeling Magazine, and Consumer Reports. It lists the following home improvements among its top “paybacks”:
* Steel entry door replacement : 129% cost recovery
* Wood deck addition : 81% cost recovery
* Vinyl-replacement window : 77% cost recovery
Energy-efficiency projects also recoup costs monthly in the form of lower heating and cooling bills. Locally we are also seeing things like new windows and roofs being important because of the impact they have on our insurance bills and the fact that those improvements come with significant insurance rate credits - some people see 20%+ drops - that’s real dollars for 5 years.
Remodeling Magazine says a larger number of homeowners will remodel their homes in 2010 with less emphasis on upgrading kitchens and bathrooms, and more emphasis on adding new rooms. From an appraisal perspective, this is a terrific way to increase your home’s value — especially if your home’s bed/bath count lags your neighbors.
Before starting a Clearwater Fl home improvement project, regardless of whether your goal is increase resale value, talk with a Clearwater Fl real estate agent about other homes in the area and how they’re built and what home buyers are looking for. At worst, you’ll gather some ideas you can work into your plan. At best, you’ll keep yourself from over-improving - which many home sellers are suffering from during this post real estate boom time.
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