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88862.1.7.014:0800

9/14/11

4:01 PM

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The Last Word

Thanks for taking the time to look at our magazine. We hope it will provide you with some useful information in making a thoughtful decision during the process of buying or selling your home.

In the past, it was said that the buyer was the entity who actually determined the sale price of a home. As agents, we can help a seller identify the strongest marketing position, but ultimately, we cannot determine what the selling price will be. It takes years of experience to be able to predict accurately that figure. However, due to the recent financial situation in our country, a new entity has come to the forefront in the determination of the ultimate sale price - the bank/lender. For that reason, appraisers and lenders have now become the final decision makers in determining the value and worth of a property. If the appraiser cannot support the price of the negotiated contract, the bank will not lend money in excess of that appraised figure, regardless of the contract price.

Cell: (919) 612-3221

Cell: (919) 475-8000

Effective September 1, 2011, Fannie Mae and Freddie Mac have brand new guidelines that will force appraisers and agents to classify condition, quality of construction, and specific information about comparable properties used in appraisals. (FHA appraisals will be included effective January 1, 2012.) Based on a six point scale, agents will have to rate the condition C-1(Best) to C-6 (Worst) of a home; they will also have to rate the quality of construction in the same manner from Q-1(Highest) to Q-6(Lowest) of comparable homes. Additional considerations include updated kitchens and baths ranked from: 1.) Not Updated, 2.) Updated and 3.) Remodeled. The time frame of the work being completed will also be examined beginning with less than one year; one to five years, etc. Financing terms of the comparable properties will also be examined and must have notations regarding the various forms of financing. A few examples are sales resulting from relocation, short sale, court-ordered sale, arms length transaction or NOT Arm’s length transaction. The final area of focus requires defining more specifically information regarding basements including square footage, access, room count, etc. Appraisers will now have to answer all of those questions on that Uniformed Appraisal Dataset Form that is submitted to the bank. And - all of that information will impact the precision of the appraisal.

For more comprehensive descriptions of the requirements, please feel free to contact us at 919-419-1234 or email us at info@pscp.com to have a report emailed to you.

Cell: (919) 357-6678

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For the second consecutive month we are beginning to see some positive changes in several of the monthly indicators as we move beyond comparisons that were abnormally high because of ten months of federal tax credits. The most recent report from the Triangle Multiple Listing Service for the month of July shows positive news for the Triangle Real Estate market with closings up 7.5% over July of 2010 over a 16-county wide area. Pending home sales were up 29.6% and homes shown to potential buyers rose by 6% over the July 2010 figures. Other figures were still floundering with the average sale price for the region declining to 4.5% to $230,640, the median sales prices also sinking 5% to $189,900. The absorption rate slowed as the Supply of Inventory indicator was up 5% to show an 11-month supply. The Housing Affordability Index for July continued to remain at a record level at 179 which is 6.6% over last year and a positive indicator for housing affordability. (Data provided by the Triangle MLS, Inc.)

In this market, both buyers and sellers need as much help as possible in navigating the murky waters of today’s market. Peak, Swirles and Cavallito Properties’ brokers are here to help! Give us a call at 919-419-1234 to help you meet today’s needs and tomorrow’s goals. www.pscp.com

Peak Swirles & Cavillto Volume 2 Issue 1A  

Peak Swirles & Cavallito Properties is one of the leading Real Estate Firms of the Triangle. Their highly skilled and knowledgeable agents s...

Peak Swirles & Cavillto Volume 2 Issue 1A  

Peak Swirles & Cavallito Properties is one of the leading Real Estate Firms of the Triangle. Their highly skilled and knowledgeable agents s...

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