Dear Michael: An appraiser appraised my home for estate purposes at less then what I think its worth; I know I can get more then his appraised value. When I decide to list my home, which figures should I use?
Answer: The appraised value is not necessarily the same as the market value. The appraised value of a home is what the appraiser concludes the home is worth based on past sales of similar homes in the area, and these figures are facts. The market value is measured by how much someone is actually willing to pay for your house, and is based on facts with emotions. The right buyer may decide to pay more for your home just because he/she feels it’s the right home for them. My suggestion is to let your Realtor help you determine the actual market price of your home.
Dear Michael: We want to purchase our first home and would like to know if closing costs are negotiable?
Answer: Everything when buying a home is negotiable, but this does not mean it’s a good idea to negotiate all aspects of the transaction. The only reason you would ask a seller to pay for your closing costs is because you do not have enough money to purchase the home. If you have no funds for earnest deposit and no means for down payment, you probably shouldn’t be buying a house to begin. If your trying to negotiate the price down, do it when you submit your offer rather then ask the seller to pay your closing costs. Unless the house you are buying has been sitting on the market for a very long time, I would not ask a seller to pay for the buyers closing cost; it shows that you may not have enough money to purchase the home.
Dear Michael: What’s the deal with these mortgage loan companies that advertise “bad credit no credit okay?”
Answer: Bad credit, no credit loan programs are primarily aimed at people with bad or no credit history. In exchange for the added risk a lender assumes on the loan, the borrower usually pays a sub-prime, higher interest rate. Common sense should remind the borrower with bad credit that applying for future credit gets harder, not easier. Repairing one’s credit history should be a high priority in order to re-entering the conventional credit and mortgage loan market. Most people with a bad or no credit history should be fortunate that such loan programs exist. But they should also realize that such loans usually carry high interest rates and points.
Dear Michael: We are in escrow on our home which is set to close in two weeks. How do I best estimate moving costs?
Answer: Preparing for a move-whether it’s cross country or across town-can be a costly, stressful and time-extensive venture. Be prepared for the big move by researching, budgeting and planning ahead. Perhaps the best resource you can use to estimate moving costs is the moving company you’ve chosen to work with. Before you call for an appointment, have your home’s square footage handy, as well as detailed notations of any large equipment or furniture you have, such as a sofa couch, entertainment center or piano. They should then be able to give you a rough estimate, based on the size of your home and the number of large furniture items you have. The estimate should include costs of boxes, dollies, packing tape, labels and other moving equipment, as well as the moving costs per mile; the size of your home will help the moving company determine how many boxes you may need to pack up all of your belongings. When it comes to the often extensive costs of moving, it pays to plan ahead. Be sure to research the best price regardless of whether you’re planning the move yourself or if you’ve decided to hire a moving company. Rates for moving companies, truck and equipment rentals and moving supplies can vary greatly depending on your type of move. The internet and your Realtor are your best resources.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
