Posts Tagged ‘property’

Why is a Property Appraiser Important to the Home Buying Process?

It doesn’t matter what part of the home buying process you are a part of — the buyer or the seller — a real estate appraiser is important to you and necessary to the home transaction. An impartial appraiser will come in and check out the home and property and come up with true value. The appraiser does this in order to protect the seller, buyer and lender, all of whom are involved in a home purchase. Here are some reasons why real estate appraisers are important.

Discovery of the True Value of a Property

A seller will naturally want to take the home and promote how much it is worth. That’s because it will make for a higher selling price, which if it works out for the seller will be more than what was paid for the home. For a buyer, there is a desire for the knowledge that the price is right. And the lender wants that true value to know that the money loaned out is worth it and it is a good business move for them to fund. If a true value was to come in lower, then it might not make for a good business deal for the lender, especially if the home may not sell for a profit in the future.

With the impartiality of the appraiser, all parties can expect an honest finding of the value of the property, which is based on its neighborhood, its market, its improvements and the size of the home.

How it Works for the Buyer

If you are the prospective buyer, you will want to make sure you are getting something of real worth in your new home. With the appraisal, you get to see what that fair price is and from there you can decide if you want to spend money on it. If not, you can always reconsider what you want to pay for the property and could decide not to make the deal.

How it Works for the Seller

If you are a prospective seller, you want to discover the value of your home so you can make a fair selling price for your property when you put it out into the market. If you have a low valued home, you may change the cost of the home or make more improvements in order to increase the value.

How it Works for the Lender

As the lender, the bank is making a gamble by lending money to the prospective buyer. To the lender, determining the value of a home will enable the best possible contract with the buyer. Instead of giving money to the buyer for the price they paid, the lender knows the entire value of the home and can then assess the risk.

And that’s where the role of the appraiser comes in — assuring that the property’s value is right for all involved. Without the appraiser, the true value won’t be known, which impacts all of the parties who are touched.

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As an attempt to combat the stagnant housing market, more and more people are investing in the exterior of their homes to make a great first impression with potential buyers. If a buyer decides that your home isn’t right for them before they even set foot in it then it’s going to be extremely hard to change their mind. Creating a striking and unique exterior to your home can help to lure potential buyers into choosing your property as their next home.

Paint

Adding a fresh coat of paint to the windows and window sills of your home is one of the cheapest ways to make it look inviting. Don’t opt for crazy colours such as pink or orange, instead stick to something classic and subtle such as navy blue or even deep red to give it a cosy feel. If your home has a particularly large bay window then this can be a selling point so you could paint this a brighter colour to draw attention to it. 

Walls

Depending on the style of your home and the quality of the brick work you may want to invest in some cladding to give your home a uniform look and make it stand out from the others. Cladding comes in a wide variety of materials including stone, timber and vinyl so you can easily find the right solution to give your home a face lift. Cladding can also minimise the damage your home receives from the weather as well as helping to insulate your home so it can be a selling point in its own right.

Windows and doors

Simply having your windows professionally cleaned can liven up the exterior of your home as sparkling glass will catch the eyes of potential buyers. Replace any shabby nets or curtains with modern and crisp looking blinds which will also let natural light flood into your home. If your window sills are in need of some attention then consider replacing them as cracks and splits in window sills could make buyers question the structural condition of your home. Your front (and back) door need to be in optimum condition as this is what will lead buyers into your home. Replace a cheap or untidy door with a quality wooden one which has an attractive number and letter box and opens easily without sticking or creaking.

Garden

Everyone has a personal preference when it comes to gardens – some prefer lawns and flower beds, others prefer low maintenance decking and paving – so there’s no way to cater for everyone’s tastes. This shouldn’t mean that you should ignore updating your garden though. The best way to create a garden that everyone will like is to make sure it’s neat, tidy and well maintained, especially at the front of your home. If your front garden consists of little more than a hedge you should make sure the hedge is neat and trimmed. Clear paths of any moss and weeds and add some attractive flower pots to create a welcoming feel.

The exterior of your home is the first thing potential buyers will see so it’s vital to make the best impression possible so every viewing has a positive start.

When you have plans of purchasing a property, you will surely look in property listings and other sources that you can think of.  Searching for prospects is easier if you know exactly what you want in your house.  But the saga will not end there, before making your final decision there are some costs that must be considered.  True enough, becoming a home buyer will need vigilance and discernment on every move you make as well as every penny you shell out on the deal.

These home buying expenses cover the following things like insurance, closing and property taxes.  Such taxes must be on top of the priority if you want to end up with a good one.  You can not avoid the fact that they are already part of every real estate deal and thus never attempt to get away from them.  When you apply for a home mortgage, items such as property tax, insurance charges and other costs are already settled.

These taxes must be paid off during the first quarter of the home purchase procedure.  Actually there are sellers who should these taxes from the start of the procedure.  However, when you finally reach the closing, the buyer is reliable for paying all of them.  All home buyers are required to pay these taxes as mandated by law.

In some cases, the lender will persuade you to open an account that will hold the two months deposit before you end the deal.  True enough that the Escrow account is used to settle the property taxes and hazard insurance.  If you are trying to understand the importance of this Escrow account, simply think of this way, it is just like asking why you can not settle your own property taxes.

On the other hand, people who opened for an Escrow account and applied for mortgage are said to default on loan dues.  Tax defaults are impossible to occur when the year ends for borrowers who do not have enough resources to settle their yearly tax dues.  Payments done every month are deposited into the Escrow account to secure that you are paying your taxes on time.

The Escrow account is a savings kind of account for particular reasons like paying your homeowners insurance premiums and real property taxes.  But you must have enough resources to be deposited to the account to give assurance that you are a responsible payer.  When the time comes that you will apply for a loan while looking for a possible property, lending companies or banks can pay the taxes on your behalf if you have an Escrow account.

Opening an Escrow account to pay the property taxes is advantageous on your side as a home buyer.  However, like majority of home buyers, it will still depend on their choice if they want to settle their taxes on their own or end up in money market account.

Alternatively, if you want to be secured that you will not be able to fail on paying your taxes, it is ideal to open an Escrow account!  The loan officer will definitely like this since he will have less worries on dealing with overdue accounts.

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It doesn’t matter what part of the home buying process you are a part of — the buyer or the seller — a real estate appraiser is important to you and necessary to the home transaction. An impartial appraiser will come in and check out the home and property and come up with true value. The appraiser does this in order to protect the seller, buyer and lender, all of whom are involved in a home purchase. Here are some reasons why real estate appraisers are important.

Discovery of the True Value of a Property

A seller will naturally want to take the home and promote how much it is worth. That’s because it will make for a higher selling price, which if it works out for the seller will be more than what was paid for the home. For a buyer, there is a desire for the knowledge that the price is right. And the lender wants that true value to know that the money loaned out is worth it and it is a good business move for them to fund. If a true value was to come in lower, then it might not make for a good business deal for the lender, especially if the home may not sell for a profit in the future.

With the impartiality of the appraiser, all parties can expect an honest finding of the value of the property, which is based on its neighborhood, its market, its improvements and the size of the home.

How it Works for the Buyer

If you are the prospective buyer, you will want to make sure you are getting something of real worth in your new home. With the appraisal, you get to see what that fair price is and from there you can decide if you want to spend money on it. If not, you can always reconsider what you want to pay for the property and could decide not to make the deal.

How it Works for the Seller

If you are a prospective seller, you want to discover the value of your home so you can make a fair selling price for your property when you put it out into the market. If you have a low valued home, you may change the cost of the home or make more improvements in order to increase the value.

How it Works for the Lender

As the lender, the bank is making a gamble by lending money to the prospective buyer. To the lender, determining the value of a home will enable the best possible contract with the buyer. Instead of giving money to the buyer for the price they paid, the lender knows the entire value of the home and can then assess the risk.

And that’s where the role of the appraiser comes in — assuring that the property’s value is right for all involved. Without the home appraiser, the true value won’t be known, which impacts all of the parties who are touched.

Below is general discussion of various factors impacting property taxes in San Diego, California. The reader should consult their tax advisor for definitive guidance about property tax issues and not rely soley on the informaton below.

Property tax rates are capped in California due to the passage of Proposition 13 in 1978 (“Prop 13″). Prop 13 was a ballot measure approved by the voters of California to limit property tax increases. The legislation also mandated that any future increases in property tax rates have the support of two-thirds of the Legislature for approval. This provision dramatically limited the ability of the legislature to increase taxes.

The property tax rate in California is 1% of the assessed value of real estate, plus any bonds, fees and special charges. Properties can only be reassessed when there is a change in ownership or when new construction is completed. Unless one of these reassessment conditions exists, Prop 13 allows for annual increases of up to 2% of a property’s value.

The passage of Prop 13 dramatically limited the legislatures ability to increase taxes. Despite this, municipalities desired a mechanism to subsidize the building of infrastructure for new developments, so in 1982, the Capital Facilities Act was passed. The act is better known by its legislative authors, Senator Henry Mello and Assemblyman Mike Roos (i.e. Mell-Roos Assessment).

According to the San Diego County Assessor, “Mello-Roos districts are established by local governments at the request of a developer to finance specific public facilities and services such as schools, roads and libraries. Mello-Roos districts were authorized by state law in 1982. This law allows any public agency to establish a Mello-Roos district, which then can issue the necessary tax-exempt bonds and impose fees to pay off these bonds.” Communities or districts that impose a Mello-Roos fee are distributed throughout the County but are most common is large new subdivisions.

In addition to the 1% tax rate allowed by Prop 13, Mello-Roos fees are a separate charge on the property tax bill. The duration of Mello-Roos fees are linked to the amount of time needed to pay off the bond, which is typically 20-25 years. Mello-Roos fees range from $174 to over $3000 annually, and the average fee for San Diego communities was $1,488 in 2006.

To get a general idea about the amount of property taxes you would owe annually on a property, multiply the purchase price of the property by 1.2%. For example, if you purchased a $400,000 home, your annual tax due would be around $4,800, plus special assessments (if applicable), and Mello-Roos fees (if applicable).

Consumers should be aware that tax rates for a particular area can increase as news bonds are added or decrease if bonds are paid off. In addition, Special Asssessments (if any) for new infrastructure can also impact tax rates.

When considering the purchase of real estate, single-family homes, condominiums or townhomes in San Diego (particularly in newer communities), propspective buyers should find out if the property has Mello-Ross or other Special Assessment fees, how long these fees will continue, and if the fees increase annually.

Over 1 million tax bills are sent out every year in San Diego County by the County Tax Collector. The tax period in San Diego covers the period from July 1st to June 30th. The amount owed is based on the assessed value of the property as of January 1st. The tax bill is mailed out in September or early October, and is due in two equal installments; first payment is due December 10th and the second payment is due April 10th. State law does not allow for extensions to pay the tax bill and late payments are subject to a penalty of 18% APR. For those wishing to pay by credit card, the Discover Card is the only option at this time.

For more information about property tax issues in San Diego or to obtain a definative answer to your property tax questions, contact the San Diego County Assessor or your tax professional.

“TOP FIVE REASONS TO OWN A PROPERTY IN NIGERIA”

The Nigerian Real Estate Market is yet to be fully tapped and for the few investors already in it they are well to do. This is because the sector is yet to be fully tapped into. Population Explosion- Nigeria has a population of over 140million people as at the last census exercise in 2006. This simply equals to a large demand for shelter across the nation, and most especially in the commercial areas of the country.  E.g. Lagos, Abuja, Port Harcourt, Aba and Onitsha. The Federal and State Governments of Nigeria have got a little impact and contribution in providing homes and shelters for their citizens. This has created a large vacuum in the Real Estate sector, so big a Vacuum that the ever increasing population has surpassed the number of government housing projects. The ratio thus is alarming- 1 in every 100k people live in government owned houses. Demand over Supply- going by the number of people currently based in Nigeria and the number of new businesses on the increase in the country it is imperative to say that the demand for both Residential and Commercial Accommodation has shot up 100% and counting.  The Fifth Reason why you should own a property in Nigeria- is for you to be play a role in filling the large gap in the sector. There is no asking if it’s a sure and viable area to invest, this sector is yearning for both small and large scale investment. And returns on investment is guaranteed 100%. check our website for property listings WWW.FSBO-HOME.BIZ/1933

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