How To Meet With The Appraiser

Don't be afraid. Don't try to hide anything. Don't wink at them either!

Sellers generally aren't the ones that meet the appraiser, it's 99% of the time the listing agents responsibility to meet them. Well, some agents (lazy in my eye) have allowed the appraiser to come in without the agent being there. Once, I let an appraiser use a combo box because we were on a deadline and I couldn't meet him when he could meet me. I did leave him a detailed list of upgrades my Sellers had completed though. The appraisal came in AOK.

So, this morning I read an article from the National Association of Realtors on what you should give the appraiser when you meet with them to assist in their report completion. My comments are in RED.

1. * MLS printout for the subject home The appraiser already has this.
2. * Copy of the contract I always ask if they need this. Honestly great way to get their email address.
3. * Spreadsheet of other offers received Oh lordy, no. They have enough paperwork to look through.
4. * Property data sheet or brochure used during the marketing period Nope, nope, nope. I'm selling the house, not me.
5. * List of improvements that includes year completed and cost YES, Big YES!
6. * Description of special features that make the subject property stand out from other homes in the area YES, in writing for sure!
7. * MLS printouts of sales you want the appraiser to consider They know which ones to use. I actually walk into appraisal appointments saying I know you can see all comparable sales like I can.
8. * MLS printouts of pending sales with actual contract prices If it's a challenging one, that I have confirmed the contract price with that listing agent, then yes.
9. * MLS printouts of current listings They have access to all of this. Can you imagine what their car would look like if I gave them this too?
10. * Realtors Property Resource® (RPR) report using the Refine Value tool to offer your own opinion of value No appraiser wants to hear MY opinion of value. They can get offended pretty quickly. 
11. * Survey of the property, if available If it's that kind of property,100% yes.
12. * Floor plan and measurement of the home, if available If it's not a track house, yes. BUT, they have to do their own measurements anyways.

There has to be a certain amount of Trust & Respect with an appraiser. Appreciate that they are much more well trained than a Realtor is to determine value. Know that their job, like mine, is somewhat of a repetitious beast. They get better with age. They learn with experience. 

And, I've learned in almost 2 decades, they really don't want some dang Realtor telling them what they need to do.

One thing the list didn't mention? ALWAYS have the HOA information handy. They can find that too, but they love to jot it on their notes and not have to look for it. Trust me on this!

The purpose of this photo? 

Well, when the appraiser that scheduled a week ago for today calls in sick?

Ya don't bother to do your hair and you get to wear a sundress with no concerns at all that you don't look uber professional!

You Want Your Kitchen To Feel Like It's Outdoors You Say?

Well, Houzz obviously would be the best place to check out for some great ideas!

The biggest takeaway from the article I read is of course...LIGHT. Well, that sure makes sense! The more light the more outdoorsy feel for sure. And, of course, what's the best way to get more light in your kitchen? Windows!

So, the article was about remodeling your indoor kitchen to feel more like the outdoors. Definitely to consider getting the max daylight in the positioning of your kitchen. Better in the kitchen than in the bedrooms!

They even mentioned skylights for extra light, so if you're doing some extensive remodeling or building from scratch remember this.

Another idea they mentioned was to use products that come, well almost, directly from nature. Like ceiling beams!!! Oh, and yes, maybe some brick pavers somewhere....we do see those outside a lot.

Here's the Houzz article if you want to read the entire thing:

8 Ways to Remodel Your Indoor Kitchen to Get An Outdoor Vibe

And, here's a couple of my fave pics from their article too!

I mean, talk about an outdoor vibe!

I'm sure you know this is my fave!

Those beams, those skylights, all that light!

LOVE it!!

It's Definitely Summer In Santa Clarita

It's not just the weather that tells me it's Summer either! 

A couple of hints....

Inventory of Active homes? 254. Wells Fargo stopping Personal lines of credit? Yes they have. Eight price reductions in the last 24 hours? Yup, we had that today. And, a social media post from an associate? 'Four motivated Sellers, does anyone have a buyer for one?'

Let's face it, our entire last 18 months have been insanely busy with Buyers & Sellers. This has been the wildest market I've seen in over 19 years in the Real Estate industry.

But, I'm seeing changes. I blogged (or maybe YouTube-d) about it recently. That the higher end was seeing less activity, more cancellations. 

Now, while the inventory is still ridiculously low, it was at 291 same time last year. And, interest rates are like nothing we've ever seen before ...well, til we had a pandemic, like nothing we've seen before either. We are definitely seeing a change.

Summer in SCV is hot, hot, hot. People are on vacations, kids are out of school. And, with the mad rush of the last 15 months, maybe a little break will be good.

Recently braniac economists stated that we'd see continued appreciation. Not like the last pandemic year, but they expect that we still will.

When I see an uptick in inventory, price reductions daily, agents talking about motivated Sellers, and a big bank stopping personal lines of credit? I'm thinking it's time for my Buyers to get ready for a market with less competition.

I just put a new listing on a week or so ago. A month ago we'd have had 30 showings, this time round we had about 18. Still a healthy number of offers, but not like a month ago.

So, just a little FYI for you. Feel free to reach out for any questions about anything Real Estate related!

Economists Thoughts About Home Price Appreciation for Next Few Years

A Look at Home Price Appreciation Through 2025

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. Below are the expected year-over-year rates of home price appreciation from the report:

What Does This Mean for Homeowners?

Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.

Home Price Appreciation and Home Equity

CoreLogic recently released their quarterly Homeowner Equity Insights Report, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:

"Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.

Bottom Line

Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you're a current homeowner who’s ready to take advantage of your built-up equity, let’s connect today to discuss your options.