Well, I have had another listing appointment where my client has presented me with an appraisal for which they just paid $350.  I am cringing inside because in the last 14 years of my real estate career I have seen countless appraisals and almost always the value is way too high.

 I’m not sure why this is…but it is true 90% of the time.  There are a few appraisers out there like Christian Kincheloe who is right on the money every time.  But, mostly they are off.  Now, this is not because appraisers don’t know what they are doing.  Not at all. Usually an appraiser is handed a contract and is trying to justify that particular price.  If there is a contract, that means a buyer in this market has decided to spend a certain amount of their hard earned money on this property.  That is market value.  Thier job is to verify that the price being paid is within norms of the other houses selling at that time.

 As an agent we are out showing houses every day.  On average, I will show one of my clients between 20 and 30 houses in a particular price range. That means that I have a pretty clear idea of the competition and of what the active buyers are willing to pay.  It gives us an advantage in a pre-sale pricing situation.

 So here is my unsolicited advice… call 2 agents and get a FREE market analysis from each.  Then you will have a really good idea of what your home is worth.  Tell the agent that you are wanting a WRITTEN market analysis and ask them to bring data from the MLS.  I provide this service for my clients even when they are not wanting to move immediately. I do it to help them see if it is time to contact the bank about removing PMI payments, if it is smart to add on a deck or pool, etc. It will take the agent about 30 to 40 minutes to research and create an analysis.  If they really want to be your “agent for life” (which you hear ALL the time) then they should have no problem doing this for you.

 There are times that an appraisal is the absolute right thing to do, but wouldn’t it be nice to have all the data from an experienced agent to share with your appraiser while they are there collecting data for their report?

Just some food for thought!  And besides, having an agent do the analysis doesn’t cost you $350!

According to the most recent statistics only 2 to 3% of all the mortgages in the US are in foreclosure.  That seems like a relatively small number, but it can feel like the end of the world if you are in that small percentage.

Here is an excerpt from a HUD website: 

The President has signed into law legislation that will allow HUD’s Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners.  The Hope for Homeowners program will continue FHA’s existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford.  Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford.  The program will be implemented on October 1, 2008.  Continue reading the fact sheet

Not all people will be eligible for the program, if you aren’t FHA has some advice for dealing with your lender.  Don’t bury your head in the sand because these issues are not going away. The good news is that your lender does not want your house back.  Check out this link:

http://portal.hud.gov/portal/page?_pageid=73,1827458&_dad=portal&_schema=PORTAL

 Maybe it will help to know that you are not alone!

We are helping many clients with short sales currently.  A short sale is when a seller owes the lender more money than the market will bear for the home.  Once an offer is received it is submitted to the lender for approval.  There are many things that can happen after that…ranging from the lender forgiving the debt to arranging for a repayment plan.  The question then asked is “If the lender forgives any money, is it taxed?”  I called my accountant Bill Sunderland and he sent me a link that answers the question.  Here it is!  I hope it helps.  http://en.allexperts.com/q/Tax-Law-Questions-932/2008/5/short-sale-tax-1.htm

Welcome to Cathy Thompson’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Lee’s Summit.