Rising Home Prices
Home prices have plunged after the real estate crash the housing market experienced an increase in prices in last couple of years. What does this mean to somebody looking to buy their first home? Signals are mixed about the housing recovery and sellers in some hot markets are starting to list their homes based on last year’s increase in prices and we have noticed that some appraisals have come in lower than the purchase price because sellers are too optimistic and over-selling their homes.
Personally, I had one deal in Houston, Texas where the buyer purchased the home for $260,000 and the appraisal came in $45,000 less at $215,000..ouch! You must check out recent sales of comparable homes in the area before putting in an offer on a home. You can visit Zillow.com to get an idea of value. I do advise you to get a Realtor when searching for a home because they have the most up to date property tools to research the value of the home and make sure you are not over-paying for the home.
Another thing to consider is the fact that you will be paying $350-$500 for an appraisal on the property when you put in a contract on a home and most people these days can’t afford to throw away several hundred dollars and hope that the home appraises out.
Today, you need to do your homework on the home’s value prior to putting in an offer on a home and that is the reason why you should find a good Realtor to assist you in your home search and get a beat on the home’s “true” value. Recently, a buyer had come to me after putting in offers on 3 homes which the appraised value came in lower than purchase price on all 3 properties so I referred her to a great Realtor and now she owns a beautiful starter home. If you want more information on how we can help you find a good Realtor or you want more information on home prices then email firstname.lastname@example.org