ERA Team Feinstein, LLC - Real Estate Blog

MARY LOU SCALA
ERA TEAM FEINSTEIN
BROKER ASSOCIATE, ABR, CNC, GRI, SFR
WWW.MARYLOUSCALA.COM
630-915-3373

When home prices are rising, appraisals aren’t much of an issue, because if trouble arises there’s a good chance the homeowner or lender will be able to sell the property for enough to cover the mortgage debt. Lax lending standards made the appraisal even less of an issue in the housing boom a few years ago.

Now standards are tight and lenders worry that another dip in home prices could weaken the home’s value as collateral. Foreclosures and other “distressed” sales make price forecasts nearly impossible.

To make matters worse, HSH says many lenders have taken to using appraisal management companies, which sometimes hire appraisers who don’t know local markets well enough. In a nervous environment, appraisers may prefer to err on the safe side, setting prices too low.

Sellers and buyers who want to play defense should start by understanding that the lender is not primarily concerned with the home’s sales price, HSH says. More important to them is to be sure the appraised value exceeds the loan amount, since that’s what the lender has at risk.

If the appraisal falls short, the buyer’s simplest option is to increase the down payment to reduce the loan amount below the appraised value.

Of course, the buyer can also use a low appraisal to try to renegotiate the sales price. Most sales contracts provide for canceling the deal if the buyer cannot get a mortgage of a specified amount, and sellers only hurt themselves by holding out for prices appraisers won’t support.

Buyer and seller should also do their own research by studying recent sales of comparable homes on sites like Zillow.com

When shopping for a home in the winter, here are a few tips to consider and be aware of:

Winter is the time to get more serious about purchasing. For one, winter typically has fewer homes on the market and sellers seem to need to move. You may get more of a favorable deal.

Sometimes in the winter months, consumers find it more difficult and inconvenient to go out and look for a home. There are fewer buyers out there. Another reason being many buyers are unwilling to pull their children out of school in the middle of a school year. What this mean is, less buyers, less competition.

Lenders most often have less paperwork and loans to process, with that being said, usually the end result is a smoother and quicker process in getting your loan approved.

And as all seasoned shoppers know, after the holiday season, bargain opportunities are there for the taking. Who says this doesn’t apply to homes?

For more information, please contact me at your earliest convenience.

MARY LOU SCALA
ERA TEAM FEINSTEIN
BROKER ASSOCIATE, ABR, CNC, GRI, SFR
WWW.MARYLOUSCALA.COM
mls3283@aol.com
630-915-3373

The holidays are here, and I was hosting a holiday party this weekend. As I walked around to my guests, I happened to hear bits and pieces of their conversations. And of course, a couple of guests were discussing the advantages of living in the Suburbs than in the City, and another guest was playfully disputing that.

I have lived all my life in the Western Suburbs of Chicago, and I agree that there are many advantages to living in the Suburbs. There has also been a trend of corporations along with families who are moving more and more from the City to the Suburbs.

WHY?

1. Homes are generally larger and you get a larger lot in the Suburbs. In the middle of the 20th Century homes were being built in the City and at a premium, so they were built on a smaller scale. So you get more home and yard in the Suburbs.

2. Better chances of education. In some cities, a chance for a freshman in high school to finish graduation is 50/50. The chance increases dramatically in the suburbs.

3. Having neighbors. Suburban neighborhoods have a friendlier feel to them. They are more close knit. You have an opportunity to meet people that will be lifelong friends to you and your family. A sense of family like atmosphere that you do not get in the City with all the hustle and bustle of busy lives.

4. Nature…for those who love the natural scenery, taking long walks in parks, lots of trees, etc., the suburbs gives all of that to you and more. Most often people who once loved the city lights move to the suburbs because they are tired of the concrete jungle.

5. Lastly, we have seen a trend of corporations moving from the City to the Suburbs. One of the main reasons for the move is tax incentives for the businesses along with the quality of life reasons for their employees. Lower real estate, less congestion and traffic, the stores and shops are less crowded and noisy.

Let’s not forget the crime rate is decreased living in the Suburbs.

So although, I believe it’s a personal choice, there are many great advantages of living in our Suburbs. What do you think?

Hope you are enjoying your week!
MARY LOU SCALA
BROKER ASSOCIATE, ABR, CNC, GRI, SFR
WWW.MARYLOUSCALA.COM
630-915-3373