Kirk and Terry Blog

Q. We are having our house appraised next month.  What do I need to know beforehand, especially if the appraisal is too low? 

A. The purpose of a real estate appraisal is to establish a property’s value for financing purposes. This is different from a comparative market analysis (CMA), which real estate agents use to estimate a true market value. Professional appraisers are licensed and regulated by each state and follow federal guidelines.

The appraisal is a detailed report that is required by a lender to secure a loan. The appraiser’s job is to determine the valuation of a property by inspecting the property, taking measurements, examining the location of the property, comparing it to at least three similar properties, and evaluating the real estate market in the area.  It’s important to note that an appraisal is not a home inspection.

If the appraisal comes in too low…keep your cool.  If the house appraisal is lower than the sales price, the loan may not be approved.  Many times there are several things you can do to fix or correct any problems and flaws that may have been found.

Learn How To Maximize The Value Of Your Home! 

Did you know there’s a free consumer report showing which repairs and fix-ups will net you the most value for your home?  It’s call the “Homeseller’s Guide To Money-Making Fix-Ups,” and it’s great even if you’re not planning on selling soon.  You can get a free copy by visiting our webstie at…

www.MarcsHomes.Com

Q. What are the new trends in home building? 

A. Every new home buyer has their own personal preferences, but according to a recent survey conducted by the National Association of Home Builders, there are some new trends in the new home building market.

Buyers surveyed wanted spacious garages with lots of storage, and many buyers wanted space for a workshop.  New home buyers want high-tech wiring for sound systems, computer networks, and entertainment.  One of biggest shifts is buyers are looking for fewer open floor plans, and preferred partial walls that separate areas.  Activity rooms were also important to new buyers.  This included space for a home office, game rooms, exercise areas, home entertainment areas, or a family room/den. 

Storage areas (kitchen pantry, walk-up attic, large closets, and special cabinets) were particularly important to new buyers.  New home buyers also wanted homes with lots of natural light.  Fewer buyers were interested in two story homes and preferred the master suite on the main floor with a walk-in shower stall. 

If you are buying or selling a home and need competent and caring representation, please call me, Marc Austin Highfill, at (804) 527-EXIT.

Do you find yourself getting that urge to drop-into Open Houses, even when you’re busy?  You’re not alone.  Many homeowners visit open houses to get design ideas, or to see how their home compares in the neighborhood.

But if you find yourself attracted to Open Houses frequently, you might want to ask yourself “why.”   You might just find that, even though you’re happy with your current home, you might be subconsciously searching for your dream home.  Perhaps you want a bigger yard.  A quieter street.  A gourmet kitchen.

Whatever the reason, there are sophisticated tools that can help. A computerized “Home Search” system can scour the market finding the exact home you want – automatically. It can get you daily updates on the newest homes on the market, and since it is a computerized system there’s never any pressure from working with a person, just great service.  Even if you’re just “thinking” and want to know what’s “out there,” consider giving it a try. Feel free to go to my website and sign up at http://www.marcshomes.com or call (804) 527-3948.

The news came Tuesday afternoon that Bank of America will repay the $45 billion it received as part of the U.S. government's Troubled Asset Relief Program. BOA's move might be a good sign for the recovering housing market and the overall economy.

First, it signals that the nation's largest mortgage lender has gotten itself back into decent shape. Whether that means more lending to home buyers remains to be seen, but it stands to reason that a healthier bank is in a better position to lend money.

Think of it this way: Would you rather have the nation's largest mortgage lender able to repay $45 billion or have it buckling under the weight of its acquisition of Merrill Lynch, which was in such bad shape that BOA hinted at backing out of the merger.

Although it's true that the move HAS to have something to do with its search for a CEO to replace out-going chief Ken Lewis -- the repayment will get BOA out from under the government's restrictions on CEO compensation -- the move is also good news for a couple of other obvious reasons.

First, the bank plans to raise capital to help pay for the repayment. This means selling stocks, which means it's counting on investors to be confident enough to pony up. And investors, as the bank probably hoped, are showing confidence already. Shares of BOA stock went up 2.2 percent after the announcement. Shares are around $16 after having hit a low of little more than $3 in March.

The second part of good news is that it would appear the government's moves to shore up the financial industry last year were the right ones. By helping to prop up BOA, which acquired Merrill and Countrywide Financial, the government helped the financial sector avert further meltdown. Yes, the $700 billion TARP was painful spending of taxpayers' dollars, but in hindsight, it appears to have been vital to the economy's overall health.

"We appreciate the critical role that the U.S. government played last fall in helping to stabilize financial markets," Lewis remarked in a BOA news release.

Now, some critics will argue that this repayment will be bad for consumers -- that the repayment will lift some restrictions on the company imposed by the government on banks that received TARP money. True, it will again let BOA decide on its own executive pay and bonuses -- topics that got big banks in hot water -- but the repayment will leave in place an element that is probably more important.

BOA, even in repayment, will have to maintain higher capital levels required by the government of all institutions receiving TARP money. Not having enough capital on hand -- banks were much less restricted earlier this decade -- is what got financial institutions in trouble when the credit crunch hit. And not-good-enough capital levels are blows to a bank's ability to lend money.

That the country's biggest mortgage bank is strong enough to repay its TARP money, is able to raise the money to do it and that it will be able to maintain healthy capital levels are good signs for the tight credit market.