9 Reasons why the 1st Time Home Buyer Hire a Real Estate Appraiser

In a Real Estate transaction, the decision is on you – the buyer or sellers; make it an informed one by hiring us.

1) Real Estate Brokers and their Agents are not Lenders, Title Examiners, Certified Appraisers, and especially, they’re not Attorneys.

2) When Real Estate Agent’s List a property to market, 92% as of late 2019 Home Buyers will be Financing that home with a Mortgage-Backed Security (MBS).

3) Both the Residential Real Estate Broker and their licensed Agent’s core competency is to market and sell real estate. They do not possess either the Education, License, Experience, and regulatory compliance as NAR Ethics mandates.

4) Residential Brokers and their Agents are to advise their client’s to speak and or to engage the most relevant licensed professional for their customers’ best interest. In the context of financing a mortgage, Lenders are required by law to hire a qualified Licensed or State Certified Residential Appraiser.

5) Real Estate Agents are not responsible for either a higher than the market price or lower than market price “Comparative Market Analysis (CMA).” Only a qualified State Licensed and Certified Appraiser is the acknowledged expert.

6) In closing, if there is to be Mortgage Lending in your transaction in 2020: It’s Individual Lender Policy, Rules, and Stipulations. Then Federal and State Agency rules. And finally, The Uniform Standards of Professional Appraisal Practice (USPAP) which is the recognized ethical and performance standards for the appraisal profession in the United States.

7) USPAP was adopted by Congress in 1989 and contains standards for all types of appraisal services, including real estate, personal property, business, and mass appraisal.

8) Compliance is required for state-licensed and state-certified appraisers involved in federally-related real estate transactions. Continuous updates and Appraisal education occurs every two years.

9) In closing, appraisers have the credentials, continuous education, information, and analysis they need to deliver unbiased and thoughtful opinions of value. This is unlike the “Comparative Market Analysis (CMA),” which is simply a non-standard, non-compliant, subjective marketing and real estate sales tool.

Want to know more about Appraisers? Go to the source

What do you charge for an Appraisal?

As the Residential Real Estate season begins, we’d like to provide this public service post regarding the most common question we get as Appraisers: What do you charge for an Appraisal?

Great Question! That depends on one, the type of residential property; Mobile home, Mansion, Waterfront, etc., and two, the purpose of the Appraisal; Mortgage/Refinance, Attorney, Nonlender Buyer/Seller, etc.

Following are the typical situations and or scenarios:

1) Is this for a Mortgage Loan? If the Appraisal is for a Mortgage Loan, then Local Lenders, their Agents (AMCs), Real Estate Agents, and multiple Federal Requirements and agencies costs are involved.

a. Mortgage-related Appraisal: Fee’s range because it involves your Lender, multiple government agencies, and the Lenders third parties called “Appraisal Management Companies”(AMC’s). The Appraisal is only performed for the Lender’s benefit (the Client), and not the Seller/Buyer consumers (Non-client) benefit.

b. Mortgage Banks outsource their responsibilities onto AMCs. This process drives down their costs onto you, the consumer. As of March 2020, the estimated range that your Lender (Mid-West fees) will charge for their Appraisal is between $600. and $1200.USD (Coastal prices are much higher). The actual Appraiser that’s involved will only receive a modest percentage of that from 40% to 60% of that. The Lenders Agent, the Management Company, will receive the bulk of the fee.

2) Non Lender, Consumer Appraisal: Home Owner, Home Buyer, or other Non-Lender use? The Consumer is the Client. Appraisal fees “average” at an incredibly modest fee of $550 (Mid-West Fee). This is a bargain for the Appraiser Consumer Client because they can receive the same due diligence and unbiased third-party data and insight, the Lenders do.

3) Real Estate Agencies and their Salespersons cost: To markets/sell’s a modest $200,000.00 (Mid-West) home, agencies charge an average fee of 6%. The consumer/homeowner cost is approximately $12,000. Which does not include transfer and local taxes, this could run an additional $1000 to $6000.

4) Mortgage and or Refinance cost: That depends on your FICO score and Lending institution. This process can set you back from a low $2800.00 for the best FICO score to refinance, and up to $9000.00, (Mid-West Fee) and beyond for a new loan.

When the savvy consumer compares and performs the math, the Appraisal fee is the least expensive, and the highest value in the real estate transaction of all the players involved.

Text Trust Real Estate Appraisal today so we can set up a brief Video or Phone Chat to go over your requirements.

Real Estate Costs, Fees and the Mortgage-Backed Securities System

Residential Real Estate is Not an Asset; it’s an Expense. It is a “Non-liquid assets” that cannot be sold or converted into cash easily without a significant loss of investment and time.

That’s why before you buy or sell real estate, contact an independent, third-party professional to advise you properly before you buy or sell your residential property. The Real Estate Industry is a thirty trillion-dollar industry; it’s incredibly complex and loaded with regulations, state and federal laws, good and bad guys, and gals. And more changes have taken place since 2017 that impact real estate costs than the previous 30 years.

If you’re a person who appreciates an honest assessment, then please read on. Residential properties generate no income for their owner; they do, however, create expenses. Let’s start with real estate taxes, property insurance, mortgage insurance, and utility bills.

Now add the ongoing time-suck of interior and exterior maintenance. Now the big one; having to pay contractors when you’re unable to DIY (Do It Yourself) and those costs can bleed you dry. Yes, your home has cash (equity value.) However, you can’t tap into it unless you sell or refinance-which is another costly expense.

Appraisers are State Credentialed and Certified Real Estate Appraisal Experts. Appraiser fees are on average, incredibly modest ($550), and clients gain a wealth of unbiased third-party data and insight into your home and where it stands in your market.

When compared to the Real Estate Salesperson that Markets a modest $200,000.00 home, with the average and typical fee of 6% This will cost a homeowner approximately $12,000. Not including transfer and local taxes, which could run between $1000 and $6000.

Mortgage and Refinance cost. That depends on your FICO score and Lending institution. This process can set you back from a low $2800.00 for the best FICO score up to $9000.00, and beyond.

Every single residential home produces expenses, and you need to view it through that lens. For each dollar you tie up in your home, that’ll be one dollar you can’t invest and use to grow your wealth.

Your Home Budget Painted by the Numbers

  • Create a spreadsheet of your spending priorities:
    Automobile(s) and required insurance, maintenance, fuel.
  • College savings and Loan Repayments
  • Breakfast and Lunch Costs
  • Entertainment, Recreational Expenses like Travel Trailer, Vacations, Technology
    Retirement Funding, Healthcare Costs, Life Insurance
  • Costly Bad Habits
  • Add 10% extra wiggle room for unexpected expenses.

Now subtotal, and subtract from your current single or combined monthly income. In the Lending world, this is Debt to Income (DTI) and what is left is what you can afford to them.

That loan you just closed at your local Lender, will be sold within two to four weeks after you close the mortgage deal, to Government-backed institutions. They are publicly known as Fannie Mae, along with others. They bundle your home mortgage on the open market to thousands of global Investors every single day.

This exchange or process is called a Mortgage-Backed Securities (MBS). And according to The National Association of Realtors report, as of late 2019, 93% of all home sales involve a mortgage, and 88% of repeat home buyers have mortgages as well.

Only a *Certified Residential Real Estate Appraisers have the day to day knowledge, experience, and credential on what the lending system (MBS) requires.

No one else in the involved transaction has the professional credentials to inform you of how the complete Mortgage-Backed Security system works like an affordable and skilled Certified Appraiser. Not the Real Estate Broker/Agent or the Local Lender. After all, they’re required by law to hire a qualified Appraiser.

Trust Real Estate Appraisal Services PLC. Residential Appraisals, Valuation and Consulting Services in Grand Rapids and West Michigan. Data-driven, clear Scope of Work and solution Based Data Services: Deep dive historical and current trends, Suburb Location analysis. We always walk our clients through the best and worst-case scenarios of our products/services. Schedule your Appointment Today?

*A State Certified Appraiser credential allows for Complex properties of any type or Value. State Licensed Appraisers are not allowed to perform complex appraisals. Choose wisely, choose Trust Real Estate Appraisal.

Trust Real Estate Appraisal Services PLC

Hire us before you buy or sell real estate in Grand Rapids of West Michigan. Unbiased, third party market appraisals, valuations and Real Estate Consulting. Our clients receive far more value that what we charge in Fee's.

All You Need to Know Regarding Renting Versus Buying a Home

What do you charge for an Appraisal?

As the Residential Real Estate season begins, we’d like to provide this public service post regarding the most common question we get as Appraisers: What do you charge for an Appraisal?

Read More »

Five Outdated Seller Beliefs Debunked

Rose Colored Glasses Are Out-Dated Too

Any seller who has not sold a home in the past five years is in for a shock, everything they thought they knew about selling a home has changed.

Home Sellers, here are the new rules of engagement which you could easily make a few costly mistakes and jeopardize our chances of a timely sale.

Three Major Changes that have altered the homebuying and selling landscape forever.

Change 1: HGTV. Buyers spend countless hours watching HGTV and have developed extremely refined tastes. They know what they want, and what (in their minds when they look at homes for sale…”As Seen On TV”.

Change 2: Mobile Devices and HIDEF, Highspeed Internet. Expect No Mercy. Today’s sellers have between seven and 10 seconds to sell their home, and those seconds are on a mobile device anywhere on the planet — not in any home for sale. If a buyer does not like your online listing, they’ll move on to the next, in a heartbeat, never to return or review.

Change 3: Internet Real Estate Web Sites. Realtor.com, Zillow, Trulia, Opendoor and a host of broker-owned sites have populated the internet with user-friendly websites that provide property data, historical facts, HD pictures, automated valuations, neighborhood and school info, and more. All the above has completely removed the need for buyers to visit in person to determine if they like a home.

These three changes have not only revolutionized the way buyers search for homes, they have transformed what they buy as well.

Historically, there were three groups of buyers:

Top-tier buyers: Buy move-in ready homes that had all the amenities they were looking for.

Middle-tier buyers: Buy homes in “original” condition, for a decent price and then improve the home over time with sweat equity.

Bottom-tier buyers: Are contractors and flippers looking for distressed properties they could buy for 60 percent to 70 percent of retail value.

The middle tier, which historically represented a significant percentage of market sales, is disappearing. Todays group is paying more to obtain move-in-ready homes that look like the finished properties they have seen on HGTV.

In the past few years, we’ve seen sweeping societal shifts as homebuyer wannabes, for many reasons, are less willing or even capable of fixing up a home they’ve purchased.

With buyers moving away from “original condition” properties they perceive as needing upgrades, homes that appear in the middle tier are being forced down into the bottom tier and need to be priced accordingly. Sellers who do not understand this new reality stand to end up with far less than they imagined.

Seven Reasons iBuyer Direct Offers Are A Bad Deal for Home Sellers.

IBuyers (a moniker for platforms using new technology to make offers on homes and close quickly). Those IBuyer purchase offers aren’t designed to benefit the home seller; they are intended to benefit Corporate Shareholders. The Sellers are conditioned to get low offers and will pay equal or higher fees than from a typical Real Estate Broker and Agent.

1) Inaccurate valuations.  Zillow’s “Zestimate” is like all the other “Valuation”(Non-Appraisal) web sites. They simply exist to get eyeballs and personal information from their website for advertising or transaction purposes. 

2. Low Offers. No person, especially a Corporation that wants to purchase your home directly (With No Market Exposure) will not be offering you “Market Value.”

3. Serious Fees add up quickly. Most folks wince at the average 6% Fee Real Estate Agents Charge. Some Sellers have associated the iBuyer low offer to the average 6% Realtor fee.

Here’s the math: Not only will you, the seller, get a less than real market offer, there are Fees on top of that, like “Experience” Fees, Service Fees combined, exceeding what the Real Estate Agents would have charged you.

Still not convinced? When you sell your home, would you rather pay an agent who represents your interests or a company that serves their interests?

4. A majority of markets don’t need this ‘Service”. In many residential communities across the country, currently have tight Inventory, homeowners don’t even have to put money into updates or upgrades. Too many individuals want to buy homes.

5. Reducing Inventory will Raises Prices. Housing inventory continues to set record lows. Buyers are frustrated, bidding wars and home values escalate.

6. Home Buyers are Competing with Flippers. Investors don’t always flip houses for buyers. They often rent them out. Although not all renters are poor caretakers, there isn’t much incentive to put effort and care into a property.

Get enough renters on the street, and the curb appeal drops significantly. Renters come and go.

7. The negative effect of low offers. Imagine if two or three homes on your street are taking an instant offer. If this becomes a trend, appraisers may not be able to disregard the data.

Moreover, if you, the seller, make an immediate offer, you are messing with your neighbors’ home values.

That might not be your problem today, but it could be in the future.

Who benefits from instant home purchase offers? 

Instant home purchases are designed to benefit the IBuyer or investor under the guise of convenience to the seller.

How Can Sellers Protect Themselves?

 Contact a State Certified Residential Real Estate Appraiser. Their core mandate is to protect the Public Trust in Real Estate Transactions. The Average Fee for an independent Market Appraisal is 500.00, which is pennies on the dollar compared to paying the IBuyer Fees.

And, at the very least, interview a Licensed Real Estate Agent for a Comparative Marketing Analysis before accepting an instant offer. 

Grand Rapids, West Michigan Third Party, Impartial Real Estate Appraisal Products and Services

Trust Real Estate Appraisal Services PLC is a Grand Rapids, West Michigan Third-Party, Impartial Professional Real Estate Firm. We produce Real Estate Appraisals and Advisory products our Clients use for everyday helpfulness from start to finish of their real estate journey.

For the majority of Americans, a real estate transaction is an event we rarely experience in our lifetime. Choosing a State Licensed and Board Certified Residential Real Estate Appraiser from Trust Appraisal Services provides our Clients with the most stringent residential real estate appraisal credentials the State of Michigan authorizes.

We take our responsibility and service to our clients professionally. Our continuous training and process improvements benefit our Real Estate Appraisal Clients.

An independent third party, an impartial appraisal from a State Licensed and Board Certified Real Estate Appraiser provides several advantages over what a real estate agents informal CMA provides a potential home seller to win their listing business. Real Estate Agents work hard to build a relationship with their customers, and many do not want to devalue that relationship by getting in the middle of sticky situations like foreclosure, death, divorce or a dissolving partnership, where one or both parties are disappointed with the values given.

Second, there is a conflict of interest that can occur when a home seller who purchased their home a few years ago comes in to have that same property valued. An Agent/Broker may be tempted to give you a higher value on that equipment than it should have, to justify the original sale price and avoid an awkward experience for both the Agent/Broker and your property.

Having a third party, impartial Appraiser performs a Certified Residential Appraisal with no connection to either an Owner, their property and Agent or Broker, will get you the most accurate values with no conflict of interest that anyone needs to consider.

A professional Real Estate Agent or Broker will always recommend to their customers to consider hiring a third party appraisal.

Appraisal reports from a certified appraiser are standardized, professional, organized, and universally recognized in most courts and with the IRS.

Having an independent third party involved with no tie to either of the parties involved saves both the Home Owner and the Agent or Broker from the headaches of having to justify why they provided the numbers they did in front of a judge. Additionally, if it does have to go to court, the Appraiser will stand behind those values.

Home Owner Maintenance Cost-How it Impacts Sellers & Buyers

Home Owner Maintenance Cost-How it Impacts Sellers & Buyers

All housing components have a life span. Some parts last a lifetime, and others are more or less “consumables” and some lasting only a few years. Maintenance costs go with the property from day one of ownership and are factored to be considered to be at “market value” as defined by a Certified Residential Appraiser. 

There is a life expectancy of most of those, and that is approximately 5-18 Years, and that time goes fast. And if you, as a home Seller that could have a market value impact on your list price with low offers from market participants.

And if you’re a home buyer, performing your due diligence could save you time, frustration, and money. At the end of the day, only you can look out for what is your best interests. In real estate, it’s “buyer beware.” If your experience in real estate is limited, selecting the right professional is paramount for your success by choosing the right deal or falling into a money pit.

No one can better look out for you and your family’s self-interest other than you. Choosing the professional will provide you with that due diligence. Buying a home for the first time or third time can be emotional for those involved. Don’t enable yourself into “sleepwalking” through a home purchase process. “Sleep Walking” is a term for anyone that’s over-reliant on an inexperienced one real estate actor, In addition to not being vetted by you for professional competence.

Selling or Listing Your Grand Rapids West MI Home? Ask these Questions

Selling and or Listing Your Home?

Both REALTOR® Appraiser’s and Appraisal Organizations encourages all consumers to utilize the skills and talents of a local A REALTOR® Agent along with a Professional REALTOR® Appraiser to make the process of selling your home go smoothly and quickly.

The REALTOR® professionals are the one expert resource available to guide you through the home selling process, and the Licensed and or Certified Appraiser is the one expert that will give you factual information about the market value of your home.

Both the REALTOR® Appraiser and the Agent working together as a team will provide the required information you’ll need for your due-diligence so that you can make informed decisions.

1) When interviewing a prospective REALTOR® Agent to list your home for sale, it is essential to understand how they operate. Are they the best resource to assist you in the process? Here are some right questions to ask the Realtor Agent:

2) Do you recommend a homeowner to obtain an appraisal to help set a list price?

3) What are your qualifications to value a property?

4) If you have a Realtor designation to value real estate, how many classroom hours did it take and did you have to pass an exam to obtain it?

5) What are the difference between market value, market price, and cost? Go to Article. http://vacaponline.com/selling-your-home/