Welcome to this edition of 2Tips4Tuesday. This blog is going to change to TuesdayTips from this point on.
This home just sold and the settlement was yesterday. One of the best things the buyers did was switch from an outside mortgage broker to a local lender.
1. Real estate is local; so are appraisers!
Because the buyers used a local lender, a local appraiser was hired to give the bank his professional opinion on the home’s value. A local appraiser, like a local real estate agent, is important because he (or she) knows the local market very well and understands the differences between neighborhoods and other areas.
If you do choose to work with an out-of-the area lender, try to get one who will use a local appraiser who is very familiar with the area the house is in.
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2. When purchasing an older home, understand that it will not be perfect.
Buying a Fixer Upper Home
It seems that many sellers expect buyers to take their homes “as is” and buyers expect sellers to fix every perceived flaw before the sale can be completed.
Some things are definitely important and the seller should fix them or offer a credit; other things should be considered part of the deal when purchasing a fixer-upper or “as is” property.
When a property is listed for sale “as is,” it generally means that the seller is offering the home at that price for the condition that it is in. If the seller were to fix everything (i.e., update the bathroom, replace worn carpets, remove dated wallpaper, put new appliances in the kitchen, etc.) buyers should expect that would be reflected with a much higher listing price.
Please feel free to contact me about real estate in the Lake Wallenpaupack region of Pike and Wayne County. In addition to knowing the area well, I also know several local solutions from home inspectors to mortgage brokers, to septic service providers to local contracters and carpenters.
Filed under: Home Buyers, Tuesday Tips Tagged: | Lake Wallenpaupack, local real estate, Pike County, Tuesday Tips, Wayne County
You are so right about the value of using an appraiser that is familiar with the neighborhood. I’ve had appraisers come in from out of town and totally goof up an appraisal causing the buyers to delay their closing. This sort of mistake costs time and money for absolutely no reason.
Kristal, thanks for commenting – the house mentioned in this blog almost didn’t get sold because the buyers first used a lender based in Philly, who used an appraiser from a totally different area. The same thing happened to us as happened to you; the deal was bungled and almost went south.
But we were able to recommend an excellent local lender to the buyer’s agent (and it turned out her clients were already customers with that bank) and all was well.