Category Archives: real estate appraisal

So Cal Appraisal Services Virus, Inspection Protocol.

Hi everybody.

We will still be inspecting until instructed otherwise.

When we make the inspection appointment with the homeowner (HO) or real estate agent we will explain the protocol.

Protocol:

When we set up the appointment will tell the HO that they need to have everyone in one room and the dogs to be put in their cage, garage, etc before we enter the home.

When we arrive everyone is to stay 6 feet away from the appraiser.  The appraiser will inspect and measure the outside first.

When the appraiser enters the home we will be wearing an N95 mask, gloves and removing shoes and putting on protective peds.  Please advise children and elderly so they do not become frightened.

Once the inspection is complete the appraiser will go outside and if they have any questions they will invite you outside (6 feet away) and get any information from you.

Again we are still working and we will update our blog if things change.

Keep calm and carry on

San Diego home sales up for first time in a year

San Diego County’s housing market picked up in July with sales rising 10.1 percent from a year ago as the median home price stayed flat, real estate tracker CoreLogic said Wednesday.

The $580,000 median home price in July, showing no gain from the year before, was down from the all-time high of $590,000 the previous month.

Even with flat home prices, there was a shift in the market that may show lower mortgage interest rates are having an affect. There were 3,988 home sales in July, up by 365 from the same time last year. It was the first time in 14 months that there were more sales than the year before. Of note was that there was one extra recording date this July than last July.

Here is how the San Diego market fared by home type in July:

Resale single-family homes: The median price was $629,000, down from the peak of $649,000 reached last month. There were 2,515 sales, 195 fewer than July 2018.

Resale condos: The median price was $435,000, down from the peak of $437,000 last month. There were 1,117 home sales, 34 more from the same time last year.

Newly built homes: The median was $701,250, down from the all-time high of $812,500 reached in October 2018. There were 365 home sales, up by 136 from the same time last year.

read more at: https://www.msn.com/en-us/finance/realestate/san-diego-home-sales-up-for-first-time-in-a-year/ar-AAGtrh4

Disclaimer: for information and entertainment purposes only

Appraisal Contingency protects buyer, enables purchase price reduction

Appraised value: $380,000.

Mortgage amount: $342,000.

Purchase price: $396,000.

Mortgage type: 30-year fixed.

Rate: 4.375 percent, no points.

Backstory: My clients were first-time home buyers and looking in Richmond for a home to accommodate their growing family. Their agent, Felipe Acobes with Better Homes and Gardens Real Estate in Oakland, located a three-bedroom, two-bathroom home that met all of their requirements.

However, the property had its complexities. There was a partially finished garage and a bonus room — both done without any permits — and a significant amount of deferred maintenance. The list price was $399,000, a price that was expected to be overbid.

The buyers offered $428,800, which was accepted. In this competitive market, it is not uncommon for buyers to pay a price that does not discount the existence of non-permitted improvements and defects.

When this happens, the appraised value at times does not justify the purchase price.

In these cases, the buyer may be willing and able to increase their down payment to make up the difference. In this instance, the buyers were already getting gift funds from relatives for their 10 percent down payment and to cover closing costs, so they had little ability to bridge any price/appraisal gap.

Fortunately, Acobes had placed an appraisal contingency into the offer to protect the buyers in case of a value under offer price.

Because of the property permits and repairs issues, the appraised value came in at $380,000. Acobes was able to work with the seller to renegotiate the property price down to $396,000. Without this renegotiated price, the buyers would have had to bring in a down payment of $86,800. Instead, they just needed to bring in $54,000, something they were able to do.

Buyers are often advised that they will be more competitive if they don’t have contingencies for things like financing, appraisal or inspections. In most cases, this works out fine. But in cases in which the buyer’s agent recognizes a potential appraisal problem, a prudent Realtor will work to structure an offer that appeases the lender, protects the buyer and results in a transaction that works for the seller.

Disclaimer: for information and entertainment purposes only