Upcoming free (& non-promotional) Home Buyer Education Classes   
                                                  
Saturday , May 9, from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Thursday night, May 14 , from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, May 16, from 10am-1pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, May 30, from 12pm-3pm
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)
 

 ...if these dates/times don't work for you, we have others.  Check out the website for more class dates, times, and locations.  PLEASE always check  the web  site www.learningtobuyahome.com  ;  for any changes regarding the classes!



Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~


...and Happy Tuesday~
  
   Let's be honest here....I have good intentions of getting this out to you every Saturday/early Sunday morning, and then I get sidetracked.  On the positive side I am distracted by helping my clients and/or my family.  :-) This is positive because I have both.  :-D  

This week I want to go over some questions I have heard this week, and some things that are coming up on the real estate boards where we (real estate brokers) talk.  Multiple offers are extremely common right now so folks are coming up with many strategies to make an offer look 'better' than a competing offer.  I apologize but I am a bit frustrated by what I am hearing from other agents and from people thinking about buying or selling a home.  I understand that it is a crazy market, but folks you need to protect your self.  Contingencies are in place to protect both buyers, and sellers.  Be fore warned, because I am frustrated I will admit that this week may be a bit of rant... :-)  Hold on tight....

So, with the current market being so supply limited and demand heavy, there are reports that buyers are giving up inspection periods, and/or appraisal contingencies.  I am not a fan of either!  These contingencies are in place to protect both the buyer and yes, the seller too.  In Washington the inspection period is 10 calendar days.  By the end of the 10th day the inspection response for any possible to repairs to be negotiated needs to be submitted to the sellers agent.  If you do not then you give up any right to any repairs.  If you give up the right to the home inspection contingency you can still have the home inspection, but if the inspection turns up something major , the buyer still DOES have the right to back out, but it will cost the buyer the earnest money.  Same thing with the appraisal contingency...what happens if the home doesn't appraise for what the buyer is trying to buy it for?  Well, the bank will only lend the buyer either the purchase amount, or the appraised value....whichever is LESS.  If you are the buyer, this means you would have to bring in XX amount of cash over what the value is, or back out...and again, lose your earnest money.  For a seller, both of these are a danger because what happens if the buyer buys the home without a home inspection, or inspection contingency?  What happens if they later find something that would have been a deciding factor in their going forward?  What happens if the buyer feels this is something that the seller should have disclosed?  What happens if the seller didn't know about this?  What happens if they did, but how can you prove it?  See....giving up the inspection contingency is a barrel of monkeys waiting to be opened.....and NOT the fun kind either!
So what about the appraisal contingency?  You read how it can be an issue for the buyer, but what about for the seller?  Well, it is coming to my attention where some buyers are writing the offers for WAY over the listed price.  This is NOT a good thing!  Many sellers are under the impression that the buyers & sellers decide the worth of a home, but this isn't true...the appraisers actually decide the value of the home.  It does not matter what someone is willing to buy it for (unless they are a cash offer), it matters, loan-wise, what the appraiser says it is worth.  So, lets' say the buyer offers XXX amount to purchase the home, but the appraiser says the home is only worth XX amount?  Well, the seller (usually) has an offer on a different home using that sales price on their old home.  Their home then fails to sell, and so does their offer on the *new* home....and let's take this one step more forward....what happens if *those* sellers had an offer made on a different home that now they can't buy because their buyers couldn't buy because their buyers couldn't buy their home... WHEW!  Believe it or not...this has happened!  Of course, now the sellers think their home is worth XXX amount when....no, sorry, it really is only worth XX amount.  

So why is this happening???  
Supply & Demand.  The current market we are in has a low supply of homes for sales, and the buyer demand is very high.  Part of the reason why the demand is so high is that many people are worried that the interest rates will go up...and yes, they will.  However, buying a home for more than the market value is NOT a good idea.....EVER.  
Whether you are the buyer or the seller, you need to know what the comparable homes are selling, or have sold for.  When listing a homes, I pull up the pending homes, homes that have sold in the last 6 months, and the homes that are currently active and that again....are comparable.  I will base a listing range off of these knowing that the current condition of the home will further define the market value price of the home.  This is why I start off with a range.  When working with a buyer, each area has a different price range for their homes as no two homes are sold the same. Put 2 different homes in 2 different areas of clark county and the price difference can be anywhere between $5000-$20,000 different in price....and one story homes sell for more price per square foot than a two story home does.  
Your agent should have the experience and the cajones to tell you if a home is over priced....or listed for too low.  Some agents will list a home very low to increase the 'bidding war' possibilities.  They tell their sellers that this is a good thing for them because then buyers are fighting for the sellers home, but this is pretty crappy.  This is a healthy sellers market....a sellers agent should be sitting down with sellers with a list of comparable homes and paperwork to support their advised listing price.  Then, on the opposite side of the spectrum, there are agents who are throwing crazy high listing prices out there to possible sellers just to get their listing.  This is also awful for the rest of us because the home has a minimal chance of getting appraised at that price!  GRRRR

In short...Do NOT give up your right to a home inspection contingency period.  Do NOT give up your appraisal or financing contingency!  Do NOT write your offers for $20,0000-$30,000 (and more).  There are times in a multiple offer situation where we do write the offer for more than listing price....maybe you add the closing costs on top of the price...and maybe you add a couple of thousand on top of that to hopefully be the top offer....this is pretty common....but ONLY if the market can bear that price!!!  This is where your agent needs to be helping you. 

Are we in a bubble?  
This is a question I was actually asked this week, and my answer.... in some areas & price ranges...yeah, I do think so.  It isn't a big bubble, but some of the things going on right now are very reminiscent of what happened in the mid-2000's.  I think some of that has to do with so many new agents in the industry though too.  
Please never feel like you have to do anything.  Yes, a buyer (and a seller) need to be reasonable about what the current market is.  Your agent works for YOU, and part of this is giving you accurate, realistic, and current information.  You may not like what I have to say, but I won't sugar coat anything....a good agent won't.  I always tell all my clients that I will do my best to help them buy the best home I can in their price range, but I don't have a magic wand.  I am not in any hurry, and am not a fan of rushing anyone.  Buying (or selling) a home is one of the biggest things you will ever do.  This is YOUR mortgage.  As always, ask questions, I am always here to help.  For your first time, and for every time... for keys, and after.... I am not going anywhere.  
  Whether someone is buying or selling a home, their agent is to act as a professional and experienced adviser.  As a real estate broker, I am licensed to help people buy or sell a home, but again.....as I have said before...YOUR home buying (or selling) adventure is only as good as the team you hire to help you.

...ok...rant over!....  :-D   

 One last thing you need to remember is that a real estate agent is not a sales person.  It is not our job to 'sell' you anything.  We are assistants,   advisers  , guidance, and help.  You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want.  This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget.  ALWAYS ask questions, and expect answers without a lot of lingo.  I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself.  :-)
  


     Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  
 
   As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your homebuying adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  


If you have any questions about this, or something you have heard...or if you would like me to help you with your homebuying adventure, please call, email,   text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .  ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:    Mortgage vs Rent...How does that work?
      
                     
Last Week:  The "hidden" fees of buying a home
                     

Have a great day, and I will talk to you soon,  
;-D  
Tracie DeMars  
Real Estate broker   
Re/Max - Van Mall  
360/ 903-3504 cell  
360/ 882-3600 fax  
www.traciedemars.com  
traciedemars@aol.com  
   
“Interested in free and non promotional home buyer classes?  Go to www.freehomebuyerclasses.com for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” 

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."   
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Upcoming free (& non-promotional) Home Buyer Education Classes   
                                                  
Monday night, April 20, from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday , May 9, from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Thursday night, May 14 , from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, May 16, from 10am-1pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, May 30, from 12pm-3pm
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)
 

 ...if these dates/times don't work for you, we have others.  Check out the website for more class dates, times, and locations.  PLEASE always check  the web  site    www.freehomebuyerclasses.com   for any changes regarding the classes!



Remember...with reservation...we will throw in lunch, or dinner!  :-)
~~~~~~~~~


Hi there!  

   Sorry I missed last week....the last 10 days have kind of blurred together, and I am kind of shocked that we are coming up on the end of April!  Gratefully, tax time is done though since I had to send in my payment on the 15th...  :-(  The biggest con of being self-employed is that a large chunk of my checks goes into an account for Uncle Sam on April 15th.  The account looks beautiful on April 14th, but on April 16th it's empty and I have to start it all over again.  I start dreading that right about October every year...  Bright side though is that the tax payment is done!!  I do prefer to look on the bright side as everyone knows.  :-)  Today I have no shame in saying that I am going to lay around, enjoy the sunshine, and *gasp* take a nap!!  Yay for lazy Sundays!!!  Hip Hip Ho-ray!!!



   Not too long ago, I was on one of the facebook swap/free/sale sites, and I was reading how some people were upset with the home buying process and the 'hidden' fees they weren't told about.  It is true that there are a LOT of fees and other expenses involved with buying a home.  The point of these blogs, and of course, the home buyer classes is to give folks this information.  There shouldn't be anything 'hidden' about the home buying process.  As you know, I am a big fan of not sugarcoating anything....I believe that an ugly truth is better than a pretty lie every day of the week.  You might not always like what I have to say (and that is ok), but I am not going to hold anything back from you on the off chance you might not ask me to help you buy, or sell, your home.  Personally I don't just want to hear about the 'good' things about a loan, or process....I want to hear it all...the good, the bad, and the ugly, so that I can make the best decision for me and my family based on the pros and the cons....not just the good.  So....yes, I am not going to just agree with what you read on the internet, saw on HGTV, or heard from your direct and personal circle....I am going to give you the pros and cons because this is YOUR home buying (or selling) adventure, and YOU need to make the decisions.  My job is to help you find, and have, all the information I can get you so that you can make those choices based on a full picture....not just half of one.  

   That all being said, let's talk about the fees you can expect and some ones you might not.  I am not including down payment, or closing costs as part of this.  That will be an email in the upcoming week(s).  These are mainly fees associated with buying a home.  If you are thinking about selling a home, or know someone who is, there are some fees you need to be aware of as well.  I will post that on my facebook page at:  Tracie DeMars Real Estate, or you can contact me.  I am, as always, happy to help!

So what fees can you  expect?  There are three fees that will be needed upfront.  

Earnest Money
....earnest money is typically about $1000.   Some banks (& builders) can request 1%-3% of the purchase price for earnest money.  With a bank owned property the bank will want a cashiers check.  With a regular sale, a personal check is fine.  The earnest money is deliverable upon acceptance of the offer, and not when the offer is written.  The earnest money is always made out to the title company and is refundable based upon the 4 legal reasons to back out.
 
Inspection
...the inspection is ordered after the offer is accepted.  Remember that the inspection cost is approximately $350, and is non-refundable. You, as the buyer, will hire the inspector and they work for you.  You have 10 calendar days to have the inspection done, and respond to the seller.  Don't wait until the last minute!  Both you, as the buyer, and your buyers agent should be at the home inspection.  A typical appraisal is about 2-3 hours long.  Make sure the fee includes the dry rot and pest report....
 
 Appraisal
...the appraisal is ordered by the lender, and the lender will put in the order for the appraisal.  An appraiser comes out to the home to verify the homes value for the bank.  The bank will only lend the dollar amount that the appraiser says the home is worth.  An average appraisal costs about $600 -/+ dollars, and is paid for by the buyer.  This is another non-refundable fee.  Neither you, nor your agent, will be present at the appraisal.  With the new laws that took effect a couple years ago, neither agent, nor anyone involved in the sale are supposed to have contact with the appraiser for fear we might 'taint' the appraisal, or affect the numbers. 
 

If you are buying a home with a well then there may an additional fee for the well testing.  You don't have to do that, but as a real estate agent, I would definitely advise you to do it.  Some other inspections that a buyer can have done (at their cost) are a sewer scope & a radon test.  A sewer scope is where they send a camera down the toilet to make sure the sewer lines are open, and a radon test is a company checks for radon levels in the home.  This is always a good idea if you are considering a home with a basement.  The radon test can take 3-5 days.  Again, these inspections are at a buyers expense.

These are the only fees a buyer should see before closing.  Being told another fee?  Call, text, or email me... 

Other fees?

Changing out locks
...I always advise my clients to change out the locks of their new homes.  Why?  Well, even if the sellers give you all the keys they have...there is not guarantee that there isn't more keys running around somewhere.  I used to change out my house locks every couple of years because my kids were always losing keys.  Finally....last year... I went and purchased the the house locks that have the key pad.  It is awesome!!  I don't worry about lost keys anymore.  Every family member has a code, and what is the best is that I can add and delete codes as needed.  So...go away for a couple of days, and have a house sitter?  Give them a code,and when you get back you simply delete the code. I tell you....worth it!  

Mailbox key
...yes, legally you are not supposed to copy the mailbox key, but a lot of people do.  Mail is not something you want to mess with.  Take your HUD form down to the post office, and have them re-key the box, and get a new key.  Cost is about $75, but for peace of mind...that isn't much.  

Paint
...you will probably want to paint some, or all, the rooms of your new home.  Each gallon of paint runs about $25.

Minor repairs
...during the home inspection the inspector will probably point out some minor cosmetic repairs that will need to be done with your new home.  Remember that, at the home inspection, we are looking for any repairs that will affect the safety of the home, or occupants...or anything that may need a contractor to repair.  All homes have some repairs that will need to be done by the (new) homeowner....it is part of being a homeowner.  Don't forget that the worst thing a homeowner can do is to defer maintenance.

Lawn supplies
...did you come from an apartment?  Well, most likely now you have a yard.  You will need a lawnmower to start with.  There will be other lawn equipment that will follow...weed eaters, trimmers, wheel barrels, shovels, and a myriad other things that come with having a yard.  

Appliances
...don't forget that washer, dryer, and fridges don't come with the home.  If you don't already have these appliances then you may also be purchasing a washer, dryer, and/or a fridge.

Curtains/Blinds
...if your new home doesn't already have some then this may be on your 'to buy' list.  Sometimes even if your home does have some, you may want new ones.  

House Cleaner/Carpet Cleaner
...when a home is vacant you know exactly what you're going to be walking into when your buyers agent (hopefully me LOL) gives you keys, but... when the home is owner occupied, you don't.  Yes, you can and will do a walk thru of the home before closing, but it will still be occupied.  In many cases, when the home is owner occupied the (soon to be) previous owner doesn't vacate the property until day of closing, or sometimes even a couple of days after closing.  With cases like this, you really don't know what condition the home will be upon closing.  We have to have faith that the (soon to be) previous owner will leave the home in a clean condition, but sometimes...well, sometimes, they don't.  Also, one persons idea of clean is not another persons idea of 'clean'.  :-)  Many times, whether the home is vacant or owner occupied, a buyer will book a professional carpet cleaning, or house cleaning after closing....simply for peace of mind.  

Insurance
...wait..you already have insurance, don't you?  Well...yes, you have mortgage insurance, title insurance, and homeowners insurance, but what about earthquake insurance?  You don't...  
When I purchased my home my homeowners insurance included earthquake insurance.  About 10 years ago though we received a letter that no longer would homeowners insurance include earthquake insurance....why?  Because we live in the #1 high danger area for earthquakes.  Because of that earthquake insurance must now be purchased separately.  So, AFTER you buy your home, call your insurance company and add on earthquake insurance.  Cost isn't too much, but it is important....just in case.  


 One last thing you need to remember is that a real estate agent is not a sales person.  It is not our job to 'sell' you anything.  We are assistants,   advisers  , guidance, and help.  You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want.  This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget.  ALWAYS ask questions, and expect answers without a lot of lingo.  I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself.  :-)
  


     Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  
 
   As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your homebuying adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  


If you have any questions about this, or something you have heard...or if you would like me to help you with your homebuying adventure, please call, email,   text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .  ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:    Mortgage vs Rent...How does that work?
      
                     
Last Week:  Time is of the Essence.....real estate timelines you need to know
                     

Have a great day, and I will talk to you soon,  
;-D  
Tracie DeMars  
Real Estate broker   
Re/Max - Van Mall  
360/ 903-3504 cell  
360/ 882-3600 fax  
www.traciedemars.com  
traciedemars@aol.com  
   
“Interested in free and non promotional home buyer classes?  Go to www.freehomebuyerclasses.com for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” 

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."   
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Upcoming free (& non-promotional) Home Buyer Education Classes: 
                      

Saturday, April 11, from 9am-2pm
        Marshall Community Center, conference room
        1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
 
Saturday, April 18, from 11am-2pm
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)
 
Monday night, April 20, from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

 ...if these dates/times don't work for you, we have others. Check out the website for more class dates, times, and locations. PLEASE always check  the web site  www.freehomebuyerclasses.com  for any changes regarding the classes!


Remember...with reservation...we will throw in lunch, or dinner!  :-)
~~~~~~~~~


 Hello, Hello, Hello!

   Happy Spring to you too!  :-)  Yes, I am aware that this weeks picture has nothing to do with the topic or anything else, but it always makes me laugh, and this week, that is good enough.  I hope it brings a smile to your face too....   I have had a lot of conversations recently as a  Realtor  about homes values, what it is, how it's determined, and who determines it so I think that it would be an excellent topic for this weeks discussion. 
 I also want to thank everyone who reads these since I type them up myself....I promise you they are NOT computer generated.  I am sure the computer generated reports are probably not as long-winded.  :-D  The computer probably wouldn't be putting it together at midnight either.... I just want to say that I did get it out on Sunday and 'on time' this week (since technically it IS still Sunday!).  :-D  
  I am going to 'attempt' to keep it short(er) this week.  Please note that I said 'attempt'....no promises or guarantees are made since I tend to be a walking dictionary, and encyclopedia of information that may (or may not be) useless.  LOL....i am a great person to have on your team if you are playing Jeopardy or Trivia Pursuit.....just saying...  ;-)

There are actually FOUR values to a home....

#1...Tax Assessed Value


   T ax assessed value is about 1-2 years behind value but is what the county uses to evaluate the property taxes of a home.  This is the LOWEST value of the home in a typical market.  When market values plummeted back in the mid-2000's, they plummeted down to tax assessed values, and in some cases, even lower because the tax assessed values were being based on when values were higher.  I had many clients, back then, who were taking their appraisal that they received when they purchased their home, to the county to have the county lower the taxes based on that value.  For years now folks have seen their tax assessed value dropping, and only recently have those tax assessed values started rising.  Why?  Because the bottom of the market was 2011, and prices have been rising since then....which tax assessed values have only been reflecting for the past two years.  At the bottom of the market people were buying at, or near tax assessed value, but this is NOT market value.  Tax assessed value is just that...the value assessed on the home by the county for property tax purposes.  As tax value rises, so does your property taxes, and this will be reflected in your mortgage payment.

#2...Buildable Value 

   Buildable value is what the home would cost to rebuild if it were to burn down or otherwise be destroyed.  This is the cost of the labor, materials, etc that would be needed to rebuild your home.  This is the middle value of a home.  For awhile there it was cheaper to buy a home already built than to have one built.  As the market has gotten healthier, it is now about the same to build, as it is to buy one already built...it just depends on what you are looking for in a home.  This does not translate though if you are looking for a home on acreage.  It is still cheaper to buy a home on acreage than it is to buy land, and have one built.  This is because of the premium price that land is currently bringing in, and the fact that most land tracts are not allowed to break down to 1-2 acre plats still.  

#3...Market Value

   Market value is actually determined by the market... by what buyers are willing to buy the home for.  So, in this case, this might be better determined as listing value.  Listing value is determined by a Realtor using comparable homes in the close area.  This is an estimated listing price of a home, from a Realtor, and is based upon what is currently active in the market, currently pending sale, and recently sold.  If the home were to be listed, this is what we would list it for. So...listing value is what the Realtor things the home is worth using comparable homes in the local vicinity that are currently active (competition), pending sale, and that have recently sold.  Market value is what buyers are willing to pay.  Sometimes we, as agents, will see homes that, we think, are excellently priced, but for some reason or another, isn't receiving offers.  Sometimes we will see homes that we, as agents, think are over priced, but get multiple offers.  It really just depends on the market.  As realtors we can look at all the numbers, all the other homes, everything pending or recently sold, location, amenities,...everything...and still be off.  Why?  Because real estate really isn't about numbers...it is about PEOPLE, and RELATIONSHIPS.  People make offers on homes based on some indefinable...something..  because that home is right for them...because it strikes a chord that makes a house into something more...a home.  

and last, but not least...  

#4...Appraised Value

   So what is appraised value?  Well, this is where it gets sticky.   The appraisal is ordered by the bank (paid for by the buyer) to evaluate the value of a home for their estimation.  They are supposed to be looking at the same information as an agent, but they have some weird math formulas to apply.  The bank will only lend a buyer either the purchase price of a home, or the appraised value of a home...whichever is LESS.  There is no way to say what kind of appraiser we are going to get either.  We could get Captain America or Hitler.  
   Examples...Two sales last year....
A.  a recent sale where the comps in the neighborhood were topping off around $170,000-ish, but with the work that had been done on the home, and its condition, I was telling the owners it was worth more around $180,000.  The owners were very good friends of mine who were going to sell to this cute young couple.  I admit, I was stressing this appraisal....a lot.  I had a couple of comps to show the value of the offer which was $178,000, but with an appraiser...you never know.  The appraisal came in at $184,000!!!  You could have knocked me over with a feather I was so surprised we came in that high!  Buyers (who are wonderful) bought the home with some equity, and the sellers were thrilled with the value of the home because they thought it would be worth much less based on the comps in the area.  Some appraisers will take homes condition, upgrades, and work done into the computation...and some won't.  
 B.  A couple of months before example A... I had clients buying a 3 bedroom/2 bath home that had been totally redone for $180,000.  We all thought this was a no brainer since the comps in the area were, at least, $10,000 more.  The appraisal came in at $168,500!!  WHAT?!?!  We couldn't believe it was so low!!  The appraiser was using comps from 9 months to a year ago where our comps were much more recent.  Bank doesn't care what we say....only what the appraiser says.  
   The sellers don't know what the home appraises for...unless the home appraises for less than what the purchase price is.  If this happens, the appraisal is sent to the sellers, and the sellers can either a) accept the appraisal price and agree to sell at this price, or b) back out of the agreement.  If the seller chooses to accept the appraisal value and to sell at that price they will usually re-negotiate closing costs, or something like.  This is time for new negotiations.  If both parties can't come to a consensus, then the deal dies.  Earnest money is returned to the buyer.  
   Some sellers will get the home appraised before going on the market thinking this will help.  It doesn't.  The buyers bank will still order another appraisal and go with what their appraisal says...not what the sellers appraisal says.  The hard thing is no two appraisers are the same.  Some will come out, walk around, do some measurements, and leave.  Some though think they are inspectors and will actually inspect the home.  Their prerogative, I guess.  
   A good example of this is a home I had clients trying to buy last year.  Home was being sold for $195,000.  The first appraisal came in at $196,000, but because this was an investment property that hadn't been owned for more than 90 days, the lender required a second appraisal though.  The second appraiser sent in his report at $160,000!!!  There was a 3 day difference between the two appraisals!  Why the difference?  Different appraisers...captain america vs hitler.  
   Some appraisers will require repairs to be done to the home...and sometimes they are small, stupid stuff.  If the appraiser calls out repairs then those repairs are now 'lender required' repairs and must be completed prior to the close of the home.  Yes, the repairs will have to be signed off on by the appraiser.  Sometimes the appraiser doesn't call out anything....again, it depends on the appraiser.  I have a client buying a home using a VA loan right now (actually I have about 4 clients buying a home using VA loans right now), and VA is pretty strict...but again, depends on the appraiser.  I was fairly certain the appraiser would call out the broken bathroom window, and require a roof certificate since the homes roof is at the end of its life cycle...but surprise!  No repairs were called out by the appraiser.  
   I have had appraisers in the past call out black berry bushes in the back yard, a man hole cover in the front yard (supposed trip hazard), peeling paint on the trim, or around the garage, etc.  I currently have another VA appraiser calling out for a Well inspection....on a home that is on city water.  Go figure...  LOL


   The thing to remember is that tax assessed value has no relation to a homes market value, and neither does buildable value.  
An agents estimation of listing value is based on what we are pulling up on the rmls for homes currently active (competition, and this changes as homes come on the market, go pending, or get sold), pending homes & how long they were on the market for, and of course, recently (usually within last 6-9 months) sold.  This is also where we see what homes actually sold for vs what they were listed for.  Market value is determined by the market itself, and appraisal value is the last, and final word....and is very arbitrary.  It is very hard to argue with an appraiser.   I always tell my clients not to start packing until the appraisal comes in!  

   I am not sure if that clears anything up, but hopefully it at least explains some things.   Real estate...ever changing depending upon the seasons, and the market itself.  :-)  



   One last thing you need to remember is that a real estate agent is not a sales person.  It is not our job to 'sell' you anything.  We are assistants,  advisers , guidance, and help.  You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want.  This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget.  ALWAYS ask questions, and expect answers without a lot of lingo.  I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself.  :-)
  


    Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  
 
  As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your homebuying adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  


If you have any questions about this, or something you have heard...or if you would like me to help you with your homebuying adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 . ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:   "Hidden" Buyer fees when buying a home
      
                     
Last Week:   Where to 'find' homes & what the status's mean
                     

Have a great day, and I will talk to you soon, 
;-D 
Tracie DeMars 
Real Estate broker  
Re/Max - Van Mall 
360/ 903-3504 cell 
360/ 882-3600 fax 
www.traciedemars.com 
traciedemars@aol.com 
  
“Interested in free and non promotional home buyer classes?  Go towww.freehomebuyerclasses.com for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” 

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."  
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Upcoming free (& non-promotional) Home Buyer Education Classes:                                                                     
Saturday, April 11, from 9am-2pm
        Marshall Community Center, conference room
        1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
 
Saturday, April 18, from 11am-2pm
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)
 
Monday night, April 20, from 5pm-8pm
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

 ...if these dates/times don't work for you, we have others. Check out the website for more class dates, times, and locations. PLEASE always check  the web site www.freehomebuyerclasses.com for any changes regarding the classes!


Remember...with reservation...we will throw in lunch, or dinner!  :-)
~~~~~~~~~


Hi there!  

   Well, it has been an interesting week... 4 accepted offers this past week!  Yay!!  :-D  The lower $200,000 & under market is still incredibly tight, but it seems to have loosened up a a bit in the mid $200,000's. That is a move in the right direction....  

  It has also been interesting in regard to some questions I have received on facebook so forgive me for, again, going off of plan again.  This weeks blog is for them...  



   There are many choices of  Realtors , and lenders, out there.  Ultimately we all do the same basic thing, but it is the morals, ethics, service, and personality that we bring personally to the table that differentiates us from one another.  I believe in customer service, and I believe that we are all on the same team....and that the goal of our team is a smooth, easy, and fun home buying adventure....or at least as smooth and easy as possible.  Everyone needs to be on the same team to make this happen.  There are a lot of people involved in your home buying adventure...some you see, and some you never will.  In all there are 28 different people involved...and you know the old saying...  'too many cooks in the kitchen can spoil the broth'...but as long as we all work together, it goes forward the best way possible.  :-)  Please remember...there are never problems, there are only solutions.  In every home buying adventure, there are always 'hiccups'...it happens every time.  What we try to do is to present solutions to these hiccups....instead of just saying, "we have a problem".  There is always a solution, and we try to provide you with choices to your solutions.  In the end, the final choices are always yours.  This is YOUR home buying adventure....not ours.  We act as GPS...we can provide you with the directions to your destination, but ultimately, you drive the bus to get us all there.  


   In real estate we have a phrase, "time is of the essence", and it is an important one.  Everything in the process has a time limit, and you need to know what those time limits are since they affect you directly.  These time limits start from the moment you have an accepted offer on a home, but what are they?  Let's talk a little bit about 'soft' deadlines, and 'hard' deadlines...       


Steps:  
* - Take a home buyer education class
* - Talk with a lender, and get pre-approved
* - Talk with a real estate agent
* - Start looking for a home
* - Find 'the' home
......these steps have no timelines.  Don't feel rushed.  Remember this is YOUR home buying adventure, and the only deadline here you are on is your own.  Sometimes this moves very fast, and sometimes these steps can take months.

* - Make an offer on a home - *
....typically you have an "offer expiration date" as part of your offer.  This says that your offer expires at such and such date, and time.  Now, if the sellers respond to your offer after that date/time, the ball is in your court.  You can accept, counter, or walk away.  If the sellers accept your offer prior to the expiration date then you have a signed around contract.  If the sellers accept your offer after the expiration date, you can still walk way since 'technically' the offer is already expired.  The seller doesn't have to legally respond to your offer before or after your expiration date.  The sellers agent does have a legal responsibility to present ALL offers to the sellers prior to the expiration date/time.  If the seller counters  your offer, meaning the sellers have changed something in the offer, the ball is in your court.  You have the right to accept the change, counter the counteroffer, or ignore it all together.  An offer in a counteroffer situation is not a mutually accepted agreement, and anyone else can still make an offer on the home....and the seller can still accept a different offer.  The offer is not pending sale until both parties have mutually agreed to all conditions of the offer.  

Once you have a mutually accepted offer...the 'hard' deadlines begin...

* - Earnest money becomes due within 3 business days of the mutual acceptance - *
(have a promissory note as part of your offer.  We go over the importance of this in the class, and how earnest money is delivered...what it does...how it works. I will discuss earnest money in depth during another email, or you can come to the class.)

* - Inspection - *
Most deadlines are done by 'business days', but the inspection contingency timeline is different.  You have 10 calendar days to perform a home inspection with a licensed home inspector, and to provide the seller with a list of any requested home repairs.  You can accept the home in its current condition, or request repairs, but again, that list any repairs must be provided to the sellers agent by that 10 day deadline.  This deadline starts from mutual acceptance.  The sellers have 3 days to respond from receipt of the inspection repairs request.  

These are two pretty big deadlines...  After the home inspection has been done, and mutually agreed upon, the lender begins their deadlines.  The appraisal needs ordered, and done.  Underwriters need to do their job and review your file.  Then the title company needs to do their title insurance, docs, and get you in for signing.  From home inspection to signing is usually between 3-4 weeks for the average FHA, VA, or Conventional loan.  Some of the government loans like, USDA, the NHF downpayment grant, and the State Bond downpayment assistance loan can add more time to this.  

* - Closing - *
This is the last BIG hard deadline.  When your agent writes your offer, you should be discussing what day you would like to get keys.  Closing is the day that the home records at the courthouse in your name, and you become the official homeowner.  When this happens your agent can give you keys.  In Washington State, signing is not closing.  You will NOT receive keys the day you sign.  The average timeline is about 36 hours AFTER you sign for you to close and receive keys.  Closing/recording happens at the courthouse, so nothing happens on the weekend.  :-)  

The sellers are expecting you to close 'on or before' the closing date.  If you do not close on that particular date your agent, and you, need to request a closing extension from the seller.  The seller does not have to grant that extension.  If you do not close on time, you could lose your home, and the money you have already spent for earnest money, inspection fees, and appraisal fees.....or the seller could grant the extension, but with a daily fee for the time needed to close.  One thing your agent should do is make sure they give enough time for the lender to close your home loan.  It is always better to close on time, or early...rather than asking for more time.  You don't want to make your lender rush something as important as your home loan.  Lenders need time to get all their stuff done for you.  :-)

 One last thing you need to remember is that a real estate agent is not a sales person.  It is not our job to 'sell' you anything.  We are assistants,  advisers , guidance, and help.  You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want.  This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget.  ALWAYS ask questions, and expect answers without a lot of lingo.  I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself.  :-)
  


    Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  
 
  As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your homebuying adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  


If you have any questions about this, or something you have heard...or if you would like me to help you with your homebuying adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 . ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:   "Hidden" Buyer fees when buying a home
      
                     
Last Week:   What is a homes value?  How is that determined?
                     

Have a great day, and I will talk to you soon, 
;-D 
Tracie DeMars 
Real Estate broker  
Re/Max - Van Mall 
360/ 903-3504 cell 
360/ 882-3600 fax 
www.traciedemars.com 
traciedemars@aol.com 
  
“Interested in free and non promotional home buyer classes?  Go towww.freehomebuyerclasses.com for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” 

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."  
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).