Lucky Charm

For over three decades Jean Feingold has nested in a classic Spanish colonial bungalow in a historic Gainesville neighborhood. Built during the era of silver screen stars,  the little bungalow has its original floors, a fireplace, and plenty of vigorous flowering shrubs.

Feingold paid off the mortgage long ago, but with home improvement changing her neighborhood block by block, she was curious as to how much her place was worth.  In her winning submission to ForSaleByOwner.com’s ‘Is Your Price Right?’ contest, she pointed out the gentrification happening all around her.  Surely the value of her house would be lifted in the this general tide of rising values. Right?

Tune in tomorrow to find out if Feingold’s rationale held water when the appraiser came calling. Or just skip ahead to the rest of the story.

What Is Your Neighbor's House Worth?

Worried about what your house is worth?

Your neighbors are too. The Rasmussen polling outfit just released the latest homeownership confidence stats: barely half of Americans – 52% -- are confident that they are above water on their mortgages. (That means, that the house is worth more than the loan.)

Two-thirds of those who bought during the bubble – three to five years ago – figure they are underwater. (That means that they owe more on the mortgage than the house is worth.)

Yikes.

As spring emerges and we finally get to stroll our neighborhoods, it’s too tempting to note which houses are for sale and how much those homeowners want. Then, we draw our own conclusions – good, bad and depressing.

Only an appraiser knows for sure what your house is worth. Wouldn’t it be great to read an appraiser’s mind?

You can! Well, vicariously. Check out  the latest article in our Education section, which walks through a house with an appraiser. Then review the tips from experienced appraiser Sharon Bagby. At the very least, you’ll get some perspective on the likely value of your house. And at the very best, you might – just might – be pleasantly surprised.

Image courtesy of Morguefile contributor Dave.

First Impressions Last for Just One Week

When you’re selling a house, you get one week to capture the interest of potential buyers. That’s it.

Longtime real estate journalist Mary Umberger recently reported that two recent studies in the U.S. and New Zealand came up with the same results: that an online listing captures four times as many views in its first week as it does a week later. After that, traffic to the listing, and buyer interest, fall off a cliff.

What does this mean to anxious sellers?

One thing: get it right the first time. There is no room to ‘test’ a price or update photos depicting a cleaner, brighter, less cluttered house. Serious househunters check every day for new listings. If yours does not appeal on the key elements – price, condition and location – they will move on and never look back.

There’s not much you can do about location. But you have full control over price and condition.

Price is the hardest to get right. Real estate agents tout their “market analysis,” which compares your house in size, condition and price to those that recently sold, and those that are currently on the market. It’s not hard to pull together this information on your own. Either way, this type of ‘market analysis’ lacks one vital component: it’s untested with lenders. That’s why ForSaleByOwner.com recommends that sellers always get an appraisal from a licensed appraiser. Appraisers work with lenders to independently validate the selling price of a house.

When you base your selling price on a current appraisal, you are aligning your price with what lenders are likely to accept. That dramatically increases your chance of getting an offer that a a lender will support with a mortgage. And that’s the end game of a strong first impression.

Image courtesy of Morguefile user anitapatterson.