Ask Your Appraiser

January 17th, 2020 1:56 PM


Simple Tips for Increasing Home Security


While it seems simple enough to purchase an alarm system and call it a day, there are countless other ways to increase the security of your home. Luckily, burglars and other criminals tend to follow similar trends, making it easier to be proactive when it comes to protecting your home and loved ones.  The following are some helpful ways to do so.

1. Invest in a secure mailbox

Think of all of the documents that you've entrusted to remain in your mailbox from the time they've been dropped off to when you check the mail. Why do we assume that a simple metal or wooden box is secure enough to protect private letters, bills, or packages? For your safety and privacy, invest in a secure mailbox that requires a key.

2. Never have unattended or exposed wiring

Often, burglars will cut exterior wires in order to sufficiently distract or disarm whoever is inside.  

3. Check your peephole

Before opening your door, always check your peephole! Make it a priority to install a quality peephole that allows your to have a large view of your front entrance without distortion. Criminals are smarter than you think and may try hiding out of the frame of a smaller peephole. 

4. Fake it until you make it

While home video security systems are cheaper than ever, you may not have the budget to fully invest in one. Still, setting up a few fake cameras outside your home with wiring coming out the back may fool intruders into thinking they are being watched and recorded.

5. Check the effectiveness of all locks

First, ensure you are in the habit of consistently using all locks in your home. This includes window locks on second floors. Burglars will usually try and find an open window or back door before eventually attempting to kick in the front door. Breaking windows or picking locks are too time-consuming and noisy. Make your door less vulnerable to human strength by installing a heavy-duty deadbolt lock, and make sure back and side doors have multiple locks. Ensure all windows have functioning locks and perhaps look into investing in pin locks as well. 

 

Appraisals By Michael is a leading full-service appraisal firm with extensive knowledge of the real estate valuation process. We specialize in numerous types of appraisal services, including property (commercial and residential), bankruptcy, divorce, immigration, relocation, and estate matters throughout metro Atlanta's $477 billion real estate market. With 20 years of experience in the real estate market, our appraisers work to provide excellent valuation and consulting services to homeowners, financial institutions, law firms, and accounting firms. Our state-of-the-art appraisal methods allow us to provide customized, detailed reports within 1 to 2 business days, helping to simplify your appraisal experience with accuracy and expertise.

For a full list of services, please visit our Services page. For a list of our coverage areas, please visit our Coverage Area page.

Interested in writing a guest article to appear on our blog? Contact us for details.


Posted by Anne-Marie Boring on January 17th, 2020 1:56 PMLeave a Comment

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January 14th, 2020 1:30 PM


5 Reason Why an Appraisal Came in Low


Having an appraisal come in low can be upsetting to both the buyer and seller. Considering the impact a low appraisal can have on the home buying and selling process, it's important to educate yourself on what factors typically lead to a low appraisal. 

1. The house is a disaster

Appraisers are human. In addition to taking objective measurements in your home such as how many bedrooms and bathrooms, they also have to look at subjective measurements as well. An appraiser will look at the interior and exterior condition of your property—if there are dirty dishes in the sink, clothes hanging around, or a permeating stench of cat urine, this will affect an appraiser's judgement. Ideally, your home should be pristine on the day the appraiser arrives from the doorstep.

2. Basements are calculated differently

Your home may have an incredibly finished basement, but the appraiser will still have to calculate the value of the basement differently than the square footage above ground. This is, in fact, one of the more common reasons why an appraisal comes in low. Valuing a basement can often be far more subjective, especially when there are extravagant features such as a home theater, custom bar, or a personal gym. While a nice finished basement can substantially upgrade the square footage and features of a home, the value of the basement space will still only be worth a fraction of what similar space upstairs would be. 

3. Improvements are not always as valuable as you'd expect. 

Home improvements and additions must be of similar value to other homes in the area to be valued as you would expect. No matter how nice, the appraiser will not value the improvements significantly higher than the same improvements in the other homes in the area. One of the biggest misconceptions among homeowners is that there is a 1:1 return on home improvements. That is almost never the case. More often than not it takes years to get full cost or more from making improvements. 

4. The market is moving too quickly

Oftentimes, a reason appraisals come in low is because of the real estate market getting too ahead of itself. If homes are selling rapidly and at increasing prices in your area, this will likely lead to bidding wars where the final price ends up tens of thousands of dollars over the asking price. These bidding wars can cause major dilemmas for an appraiser.

5. The buyer had no guidance on what to offer.

Every day there are thousands of properties that have price reductions, and it only means one thing: the home was not priced appropriately. The seller was overzealous, or perhaps the agent promised the moon in hopes to make a sale. In states where dual agency exists, a buyer will occasionally go directly to the listing agent. They don’t have a buyer’s agent in their corner guiding them, and they end up significantly overpaying for the property. When purchasing a home, it always makes sense to have a buyer’s agent representing your best interests. Don’t be conned by dual agency. 

 

Appraisals By Michael is a leading full-service appraisal firm with extensive knowledge of the real estate valuation process. We specialize in numerous types of appraisal services, including property (commercial and residential), bankruptcy, divorce, immigration, relocation, and estate matters throughout metro Atlanta's $477 billion real estate market. With 20 years of experience in the real estate market, our appraisers work to provide excellent valuation and consulting services to homeowners, financial institutions, law firms, and accounting firms. Our state-of-the-art appraisal methods allow us to provide customized, detailed reports within 1 to 2 business days, helping to simplify your appraisal experience with accuracy and expertise.

For a full list of services, please visit our Services page. For a list of our coverage areas, please visit our Coverage Area page.

Interested in writing a guest article to appear on our blog? Contact us for details.


Posted by Anne-Marie Boring on January 14th, 2020 1:30 PMLeave a Comment

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January 9th, 2020 2:19 PM


5 Common Appraisal Myths


The home appraisal can be a nerve-wracking process for many sellers. While most appraisals don't ruin a sale (fortunately!), there are still some persistent myths that far too many sellers believe. Remember: the more you know, the less likely it is that you'll be surprised!

1. The appraiser can tell you what a buyer should pay

An appraisal is only one piece of the puzzle in the art of pricing homes for sale. The appraiser will give an educated opinion on the value of the home based on training and experience, and — if you appraiser is good at what they do — the price will usually be close to the market value, but not always. 

So it can be pretty frustrating to find out that the bank won't loan the buyer more money than what the home appraises for. If the home is appraised lower than the offer, either you or the buyer will have to come up with the difference if you want to sell at that price. Many times there is a compromise to be found. The seller comes down on their price a bit, and the buyer puts more money down to make up the difference.

2. An appraisal and home inspection are the same

Wrong — they are very different! As stated in our last blog post, a home inspection is intended to identify issues with the home that everyone should be aware of before money is exchanged, while an appraisal aims to determine the market value of the home. While an appraiser may flag problems that they notice during the appraisal, it is in everyone's best interest to hire an inspector in addition to the appraisal.

3. The more money you invest in a home, the more it will appraise for

This is perhaps one of the biggest myths in real estate. In fact, some improvements may actually bring down a home's value! Many sellers are upset when they discover that they do not get equal value for the improvements they've made to the home.

Overall, the market value of your home is based on what people are willing to pay for it. Take a remodeled garage, for instance. You may have turned it into an HGTV-worthy entertainment room, but the reality is that most people are satisfied with entertaining in their living rooms and would much rather have a garage to park their cars in. 

If you are thinking about selling in the next few years, avoid making any upgrades without talking to an experienced appraiser.

4. The assessed value, the appraised value, and the fair market value are the same

There are many confusing real estate terms that seem to be used interchangeably when they shouldn't be, but perhaps none more so than assessed, appraised, and fair market values. Here are their definitions to avoid future confusion:

  • Assessed value: The assessed value is simply what the local tax assessor believes your property is worth. While a majority of people think there is a correlation to the market value, there isn't! Assessed home values are essentially a yardstick for a city or town to collect a sufficient amount of taxes to cover operational expenses.
  • Appraised value: The appraised value is the opinion of a qualified appraiser. (That's us!) This value is often sought either during the purchase and sale of a property or during a refinance by an existing owner. Lenders use appraised value as a basis for giving borrowers a loan on a specific property.
  • Fair market value: The fair market value of a home is the most competitive price a buyer is willing to pay and the lowest price a seller would be prepared to accept. Think of this value as the meeting of the minds of a buyer and seller. Ideally, an appraised value and market value should be similar.

5. A better home guarantees a better price

This is often the hardest pill for most homeowners to swallow. You may have the biggest, most beautiful home in your area, but that does not guarantee that the appraisal price will reflect how exceptional your home is. In fact, standing out too much can even do more harm than good.

Homes are priced based on their area. More specifically, homes are priced based on their neighborhood. The appraiser will consider the size and amenities of other homes in your neighborhood to determine the price of your home. If everyone else has 2,000 square feet of space and laminate countertops, but you have 4,000 square feet and granite countertops, yours will likely be priced somewhat higher, but not nearly enough to get your money back if you have over-improved.

As always, talk to an experienced appraiser before making any major changes to your home. When it comes time to sell, you'll be glad you did.

 

Appraisals By Michael is a leading full-service appraisal firm with extensive knowledge of the real estate valuation process. We specialize in numerous types of appraisal services, including property (commercial and residential), bankruptcy, divorce, immigration, relocation, and estate matters throughout metro Atlanta's $477 billion real estate market. With 20 years of experience in the real estate market, our appraisers work to provide excellent valuation and consulting services to homeowners, financial institutions, law firms, and accounting firms. Our state-of-the-art appraisal methods allow us to provide customized, detailed reports within 1 to 2 business days, helping to simplify your appraisal experience with accuracy and expertise.

For a full list of services, please visit our Services page. For a list of our coverage areas, please visit our Coverage Area page.

Interested in writing a guest article to appear on our blog? Contact us for details.


Posted by Anne-Marie Boring on January 9th, 2020 2:19 PMLeave a Comment

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Are Home Inspections and Home Appraisals the Same Thing?

No, they are not!

Home inspections are an assessment of the property's structural integrity.  Appraisals are an assessment of property value of the estimated real estate home value based on what is seen. Appraisers give an unbiased evaluation at arms-length of the true overall cost of a property after all factors have been tabulated. Appraisers do not test the major appliances and their functions, therefore, appraisals are brief, not thorough. However, an appraiser does measure the dimensions of the property inside and out and give an accurately measured size for a more accurate representation of the true real estate property value.

Appraisals also do an assessment of the surrounding market statistics from comparables, location, the neighborhood area, proximity to amenities offered, and compare their findings with the overall health of the real estate market.

In most cases, appraisers will not recommend fixes during an assessment of property value, mainly because they do not test appliances for workability and function and do not focus on the structural integrity of the home. The main focus for the appraiser is to establish a value of the property, which a home inspector will not.
Home inspections are more thorough and cautious in inspecting appliances, safety issues, and possible damage or potential problems. This may include testing for radon gas emissions, water quality, asbestos problems in the roof, and lead in the paint used inside and out. They also test for other possible toxic materials used on the home’s building structure.

Home inspectors will give you reasons and causes for issues in the home operations, unlike an appraisal. They will often inspect every accessible area, even crawl through crawl spaces and attics to find any unperceived problems in the home such as water damage, termite damage, and mold and evaluate them for safety and maintenance needs.

Typically, home appraisals are for lenders while home inspections are for buyers.
Lenders rely on appraisers to ensure that loans are not given out unless the assessed value of the property at least equals the loan amount. It is imperative to get an appraisal for loans on a property because banks are required by law to issue loans only to appraised properties.

 

Appraisals By Michael is a leading full-service appraisal firm with extensive knowledge of the real estate valuation process. We specialize in numerous types of appraisal services, including property (commercial and residential), bankruptcy, divorce, immigration, relocation, and estate matters throughout metro Atlanta's $477 billion real estate market. With 20 years of experience in the real estate market, our appraisers work to provide excellent valuation and consulting services to homeowners, financial institutions, law firms, and accounting firms. Our state-of-the-art appraisal methods allow us to provide customized, detailed reports within 1 to 2 business days, helping to simplify your appraisal experience with accuracy and expertise.

For a full list of services, please visit our Services page. For a list of our coverage areas, please visit our Coverage Area page.

Interested in writing a guest article to appear on our blog? Contact us for details.


Posted by Anne-Marie Boring on January 6th, 2020 1:30 PMLeave a Comment

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20 Practical Ways to Save Money in the New Year


We all have good intentions when starting a New Year's resolution. Along with dieting and exercising more, saving money is a popular resolution that many people vow to start once the clock strikes midnight. However, just like becoming healthier, you'll only start noticing a change when you develop healthy habits. Sound overwhelming? It doesn't have to be. With a few tweaks to your spending habits, you'll be on the fast track to financial success all year long.

1. Say goodbye to debt

Monthly debt payments are the biggest obstacle to saving money. The fastest way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. Sounds kind of intense, right? Don’t worry, it’s more about strategic behavior changes rather than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals.

2. Cut down on groceries

Most people—after they calculate a budget—are shocked to find out how much they’re actually spending at the grocery store each month. And if you’re the average American family, you’re probably spending around $650. Grocery purchases (or budget busters) add up quite a bit and end up blowing the budget every single month.

Save money on groceries by planning out your meals each week and taking a good look at what you already have in your pantry before you head to the store. Look online to put together a shopping plan that includes weekly deals, manufacturer's coupons, and store coupons you can stack.

And if you’re really trying to find ways to save money, try grocery pickup. Most major grocery stores offer it (sometimes for free). This is valuable because picking up your groceries gets rid of any temptation to grab any unplanned purchases that will go over your budget. 
 

3. Cancel automatic subscriptions and memberships

Chances are, you’re paying for multiple subscriptions like Netflix, Hulu, Spotify, gym memberships, trendy subscription boxes, and Amazon Prime. It’s time to cancel any subscriptions you don’t use regularly—and make sure that you turn off “auto-renew” when you making a purchase. If you cancel it and decide you can’t go without it, subscribe again—but only if it fits into your new (and improved) budget.

Consider membership sharing with some family or friends on the subscriptions you do want to keep around. Many streaming services, such as Netflix and Hulu, let you watch your favorite shows from two or more screens (with an upgraded account).  That way, everyone wins—and saves!

4. Buy generic

In most cases, the only thing that’s better about brand-name products is the marketing. Generic brands of medicine, staple food items (like rice and beans), cleaning supplies, and paper products cost far less than their brand-name, marked-up competitors—and they work just as well.

5. Cut the cable

It’s no secret that cable prices are continuing to rise. The average monthly price for cable TV is about $106 a month—which adds up to over $1,200 a year. Here’s the good news: Cable isn’t the only way to watch your favorite shows these days. Cut the cord and find out how to save big with alternatives to cable like network apps and streaming services.

6. Save money automatically

Did you know that you can save money without thinking about it? Try setting up your bank account to automatically transfer funds from your checking account into a savings account every month. If that sounds scary to you, you can also set up your direct deposit to automatically transfer 10% of each paycheck into your savings account.

7. Spend unexpected or extra income wisely  

Put your fat work bonus, inheritance, or tax refund to good use. If you’ve still got debt, you’ll be better off using those funds to pay off your student loans or the balance on your credit card instead of stashing that money away. If you’re debt-free, use those extra dollars to build up your emergency fund—you know, for emergencies.

Bonus tip: If you regularly receive large tax refunds, it’s time to adjust the withholding on your paycheck so you can bring home even more money each month. 

8. Reduce energy costs 

Did you know that you can save money on your electric bill just by making a few tweaks to your home? Start with some simple things like taking shorter showers, fixing leaky pipes, washing your clothes in cold tap water, and installing dimmer switches and LED lightbulbs.

While new, energy-efficient appliances are a great way to save money on your electric bill, they’re expensive! But if you work it into your monthly budget, you can pay cash for those small improvements.

9. Unsubscribe from emails

Email marketers are really good at what they do. They know the irresistible temptation of a flash sale or exclusive coupon.

If you just can’t resist shopping when you see a special offer, click the unsubscribe link at the bottom of the email. You’ll be less tempted to spend, and your inbox will be a lot less cluttered.

10. Borrow, don't buy

Need a tree trimmer for some weekend yard work or a handheld blender to make a batch of soup? Borrow it from a friend or neighbor instead of taking a trip to the store.

11. Pack lunch (and eat at home)

According to the Bureau of Labor Statistics, the average household spends approximately $3,365 on food outside of the home each year. That’s $280 per month! Buying lunch a few times a week may seem harmless in the moment (especially when your favorite restaurant is walking distance from your office), but you can save quite a bit of money simply by packing your lunch.

Not only that, you can often purchase a week’s worth of groceries for the same price as two dinner meals out. Prepare your food at home and watch your savings pile up, month by month.

12. Ask about discounts (and pay in cash)

You never know until you ask—and you should always ask. Next time you’re getting tickets at a movie theater, museum, or sporting event, check to see if they have any special discounts for seniors, students, first responders, military, or AAA members. If not, never underestimate the negotiating power of cash!  

13. Take advantage of your retirement savings plan

If your employer offers a 401(k) match and you aren’t taking full advantage of it, you’re missing out big time. Talk to your HR department to set up an account. Remember, you should wait until you’re completely debt-free (except your mortgage) and have a fully funded emergency fund of three to six months before you start saving and investing for retirement.

14. Lower your cellphone bill

If your monthly cell phone bill competes with your monthly grocery budget, it’s time to find ways to cut back. Save money on your cell service by getting rid of extras like costly data plans, phone insurance, and unnecessary warranties. And don’t be afraid to haggle with or completely switch your provider! It might require a little persistence and research, but the savings are worth it.

15. Try a spending freeze

Don’t buy any nonessential items for a week—or, if you're up for a challenge, a month! Think about it as a contentment challenge. Make your spending freeze successful by prepping meals with the food you already have, avoiding stores where you tend to impulse buy, and saying no to anything that isn’t a basic necessity.

16. DIY everything!

Before you shell out the cash to pay for a new backsplash, fancy light fixture, or even changing the oil in your car, think about doing it yourself! Usually, the cost of materials and a simple Google or YouTube search will save you a ton of money on your latest home project. (Plus, you won’t have to pay someone to do something you can most likely do yourself). But if you’re the type that can’t seem to hit the nail on the head, you might want to ask a friend or neighbor for help so you don’t have to spend extra money to fix what you messed up.

17. Skip the coffee shop  

We get it. This one is painful. But instead of spending $5 on that daily latte, you can save money by just making your coffee at home. Listen, we’re not saying you should only drink instant coffee (unless you’re into that sort of thing). But even purchasing a bag of local beans from your neighborhood coffee shop and brewing it at home will save you a lot of money in the long run.

18. Make the library your friend

Before you click “add to cart” on that brand-new book, check your local library to see if you can borrow it! Most libraries also have audiobooks and digital copies of your favorite books for rent. It’s an easy way to get your reading in without breaking the bank.

19. Try a staycation

When your goal is to save money, a vacation is the worst thing you could spend your money on. Instead of whisking your family off to Cabo, try being a tourist in your own city or state. Not only will this save you hundreds, or even thousands, of dollars, but you can also explore your neighborhood with fresh eyes and have some fun while doing it.

20. Sell everything that doesn't bring you joy

Yes, the Marie Kondo method. Get rid of the things in your home that you don’t use or that you’re willing to let go of for the sake of your financial future. That vintage chair your aunt gave you? Sell it. That crystal vase you found at an antique shop? Sell it. You’d be surprised at how much clutter you have in your home (that you don’t even use or think about). And the cash you can make on those things can be the difference between living paycheck to paycheck and having a fully funded emergency fund.


 

Appraisals By Michael is a leading full-service appraisal firm with extensive knowledge of the real estate valuation process. We specialize in numerous types of appraisal services, including property (commercial and residential), bankruptcy, divorce, immigration, relocation, and estate matters throughout metro Atlanta's $477 billion real estate market. With 20 years of experience in the real estate market, our appraisers work to provide excellent valuation and consulting services to homeowners, financial institutions, law firms, and accounting firms. Our state-of-the-art appraisal methods allow us to provide customized, detailed reports within 1 to 2 business days, helping to simplify your appraisal experience with accuracy and expertise.

For a full list of services, please visit our Services page. For a list of our coverage areas, please visit our Coverage Area page.

Interested in writing a guest article to appear on our blog? Contact us for details.


Posted in:DIY and tagged: DIYsaving moneynyeresolution
Posted by Anne-Marie Boring on January 2nd, 2020 1:35 PMLeave a Comment

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