Posts Tagged ‘home values’

Billerica Homeowners Gain from Home Value Optimism

More than half of U.S. homeowners expect their home’s value to rise in the coming year. For Billerica real estate watchers who track public sentiment as a market indicator, the news comes as a welcome addition to other reports of rising consumer optimism regarding the economy as a whole.

The finding comes from a national telephone and online survey conducted earlier this month by the Rasmussen Reports organization. It signals an acceleration in a year-long trend of rising expectations among U.S. homeowners. A year earlier, fewer than 40% had predicted that their own home values would rise in the coming year. In this latest report, that number has increased to 53%—a leap of 12% over the March finding. According to Rasmussen summary, this amounts to “a record high” in optimism about future home values.

Billerica homeowners who plan to list their own properties in the immediate future have reason to welcome measures of positive expectations. When most people expect Billerica home values to rise, buyers are apt to view current market prices in terms of their investment potential. This can prove to be important—especially when values have been on the rise for a while.

This latest Rasmussen finding was all the more impressive in that it marked the first time in eight years that a majority of those sampled expressed optimism about future home values. It is in sync with a heavy majority of industry prognosticators who predict home value increases in the coming year.

It’s always good news when there is general agreement that Billerica home values are expected to continue to rise. If your own future includes the possibility of buying or selling in the coming year, I’d like to help—call me anytime!

Joan Parcewski, Realtor & Notary

LAER Realty Partners           http://www.JoanParcewski.LAERRealty.com

JParcewski@LAERRealty.com    cell 978-376-3978

 

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Home Appraisals – Reprint from National Assn Realtors

What You Must Know About Home Appraisals

By: G. M. Filisko

Published: March 12, 2010

Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.

1. An appraisal isn’t an exact science
When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home.

2. Appraisals have different purposes
If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it.

An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an appraisal for a home loan evaluates today’s market value, an appraisal for insurance purposes calculates what it would cost to rebuild your home at today’s building material and labor rates, which can result in two different numbers.

Appraisals are also different from CMAs, or competitive market analyses. In a CMA, a real estate agent relies on market expertise to estimate how much your home will sell for in a specific time period. The price your home will sell for in 30 days may be different than the price your home will sell for in 120 days. Because real estate agents don’t follow the rules appraisers do, there can be variations between CMAs and appraisals on the same home.

3. An appraisal is a snapshot
Home prices shift, and appraised values will shift with those market changes. Your home may be appraised at $150,000 today, but in two months when you refinance or list it for sale, the appraised value could be lower or higher depending on how your market has performed.

4. Appraisals don’t factor in your personal issues
You may have a reason you must sell immediately, such as a job loss or transfer, which can affect the amount of money you’ll accept to complete the transaction in your time frame. An appraisal doesn’t consider those personal factors.

5. You can ask for a second opinion
If your home appraisal comes back at a value you believe is too low, you can request that a second appraisal be performed by a different appraiser. You, or potential buyers, if they’ve requested the appraisal, will have to pay for the second appraisal. But it may be worth it to keep the sale from collapsing from a faulty appraisal. On the other hand, the appraisal may be accurate, and it may be a sign that you need to adjust your pricing or the size of the loan you’re refinancing.

More from HouseLogic
How to use an appraisal to eliminate private mortgage insurance

Understanding the assessed value of your home for tax purposes

Understanding the amount at which to insure your home

Other web resources
More information on appraisals

How to improve the appraised value of your home

G.M. Filisko is an attorney and award-winning writer who’s had more than 10 appraisals performed on her properties in the past 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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