We are real estate investors and work extensively in the pre-foreclosure market. Many times sellers are financed 100% or close to it and there is no deal to be had so we try to negotiate with their lender to do a short sale or short payoff. As part of the process the lender needs a BPO to determine fair market value.
What is a BPO? A Broker’s Price Opinion is a market value assessment usually performed by a licensed real estate agent or broker. These are most often done on properties that are in foreclosure. A lot of times when the property is not sold before or at auction, the BPO that did the opinion will get to list the property. Sometimes it can be a full time appraiser looking for extra work that may do the BPO. Because of the fact the agent may eventually get a listing they tend to sometimes give a high appraisal.
Now realize that market value generally assumes a home in great shape needing no repairs. 90% of retail buyers will not buy a home that needs any repairs. Many lenders will not finance a home that needs wood replaced or roofing done.
What is a Drive By? A drive by consists of a BPO going to the house and stopping in front, taking a picture of the outside and driving off. They never get out of the vehicle, never to see the inside or any damage or repairs needed on the property. Comparable sales, past appraisals and tax records will be used to determine the value of the home without taking needed repairs into account. A lot of houses have good curb appeal, once you step thru the front door it’s a different story. We have had the BPO agent miss the fact that a tarp was on the roof to stop the rain from coming in the house because the holes in the roof were on the back of the house and the agent never stepped out of their vehicle.
How can I get an accurate BPO Appraisal? Be there early. Bring pictures and the list of repairs from your first visit. Develop rapport and become best friends with the appraiser. Do your homework on the neighborhood. Look for true comps. Example: If you are looking at a stucco home and the rest of the neighborhood is brick. You can’t find true comps. For future reference if you are in a mid to high humidity area, get a moisture test on the stucco and bring the results with you.
How can I keep from being a victim? Arrive 45-60 minutes before appt. Do not allow the home owner to greet the BPO instead of you. Stay where you can see the road. If you see a vehicle pull up and stop, jump out and holler politely,” Would you like to see the inside of the home”? To make the experience better for yourself and the BPO offer help. Tell them what you have found. Don’t take it personally if they don’t want help from you. Do your homework. Don’t let the homeowner show them around as they will try to point out nice things. Your job is to point out the flaws of the house and drive the appraisal down. Make sure the lender knows you are the point of contact for the BPO agent and to contact you to set up the appointment for the BPO. The pictures that you took on the first visit need to be printed out; if digital take them to a kiosk that makes prints. Have 3 copies made. Put two to a piece of paper, go with colorful construction paper, yellow is a happy color, go to your local office supply store and get printable file folder labels. In detail tell what’s wrong in the picture. Give the BPO agent 1 copy. Let them know what you have found wrong with the house or yard. Give them a repair list. Any true comparable sales you have found within a 5 mile radius will also help. Always pick the lowest comps. You will document a lot more problem area’s with the house than the BPO will see. This will be the difference of making 30k or 5k on a house.
1. Pets. Dirty litter boxes and old “accident” stains are the obvious culprits here. Keep Kitty’s litter box scrupulously clean at all times, and consider having your carpet professionally cleaned by someone who is experienced with pet stains. Don’t forget that many people are allergic to cats, so make sure your furniture and carpet are vacuumed frequently. If possible, think about keeping your cat or other pets confined to a certain area of the house while your house is listed. If you’re thinking of getting a cat or other pet, wait until AFTER you’ve moved.
2. Cooking. We’ve all been told that we should eat more fish, but until your house sells, eat that fish at a restaurant. Strong odors from cooking fish hang around and permeate the house. Cabbage, onions and garlic are notorious offenders, too. Throwing a few lemon slices in some boiling water or running lemon peel through the garbage disposal can help clear the air. And remember to take out your kitchen garbage as often as possible.
3. Cigarettes. Smoking easily drops the value of a house by 30% or more. Smoke gets into the drywall, carpets, furniture, and drapes, and it is very difficult to remove. If you or a family member smokes, stop smoking inside the house as soon as you decide to sell. Paint the interior, and either shampoo the rugs or replace them. If weather permits, keep the windows open to help air out the house.
Follow the above steps, and your home will not only LOOK good, it will SMELL good. A fresh-smelling, odor-free house is much more appealing than a stinky one, and much more likely to sell at the price you want.
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Aug
30Do you work from home? Buy your next home with your office in mind
Posted By: Ramon Rivas on August 30, 2010 at 9:04 pm
“Americans spend an average of 46 hours per year stuck in traffic. Gridlock produces more than $63 billion in congestion costs per year”
The artist community has been well acquainted with the use of work/living spaces for years, but improvements in technology have made the benefits of teleworking and occasional telecommuting more attractive to general consumers. According to the key findings form the International Telework Association & Council (ITAC) Telework America (2000) study:
“Home-based teleworkers also have larger homes, on average, than non-teleworkers; the difference amounting to about 500 square feet. The most popular place for an office in these larger homes is a spare bedroom, with the living room a distant second. The primary home telework activity is computer work (55% of total activities), followed by telephoning, reading, and—averaging 7% of the time—face to face meetings.”
As you purchase your next home, there are certain factors to consider if you need to set up a new home office:
Make sure that your high-tech needs can be met. Have a qualified electrician inspect the wiring of the house to see if the system can handle the extra power load that your home office requires. Older homes may need significant upgrades to handle the extra power, while newer homes are built with more energy-efficient systems to handle the additional power along with heating/air conditioning requirements. If you use cable, DSL or satellite internet access, check with your local service provider to see if access is available in your new neighborhood. Shop around for your telephone provider—in some cases, business service bundles may be more cost effective than regular residential service.
Designate where your office space will be. Determine the amount of space you will need to accommodate your work style and space. In many cases a spare bedroom or living room space can be used, if a formal den option is not available. If your work requires heavy telephone usage or just heads-down concentration, you may want to consider utilizing a room with a door. Doors can be closed to reduce interruptions from other family and household noises.
Plan your office blueprint to include all required furniture, bookcases, computers, fax, and printers. Make sure to allow for filing and storage space for files and extra office supplies. Lighting is critical for computer or assembly work, so make sure to allow for direct sunlight along with any specific task lighting that may be necessary. Select flooring options that will allow you to work comfortably—you may wish to go with hardwood or laminate flooring to allow for your chair to move smoothly across the floor. Install enough phone lines to cover your home, business and fax machines needs.
Is the office easily accessible? If you will expect regular package deliveries, make sure that your designated office is easily accessible to the front door of the home. This is also necessary if you will need to meet clients or visitors in your office and would like to ensure a professional appearance for your business.
Find out about local business requirements. Some cities have zoning restrictions and guidelines for work/living spaces along with tax implications. Make sure to check with your local government to determine if special restrictions exist.
People don’t walk into your house, and say, “Wow, they have all new electric. Let’s buy.” That’s just a core expectation. The trick to selling houses fast is to seduce your customers to fall in love when they walk through. It has to feel like a home to them.
The two most inexpensive yet surefire ways we have found to create this atmosphere is through color and through decorating.
A tastefully decorated house really stands out from the others. New house builders learned this a long time ago. Why do you suppose they hire interior decorators? But they have the advantage of creating one masterpiece to sell many. Rehabbers don’t have that luxury. But we discovered that a house can be “staged” to feel like a lived in home. Staging is the art of artistically placing décor items around the house. Perhaps a colorful place setting on the kitchen counter along with open coffee beans for aroma, and an open recipe book turned to a colorful picture. Bathrooms dressed up with beautiful towels, sweet smelling soaps, and window treatments as shower curtains. Finally, fireplace mantels decorated as if the family was already living there.
But even staging doesn’t create the ambiance you need. It is the warmth that comes from color. You may have heard to use a white-on-white color scheme to remain neutral and not turn anyone off. The truth is – no one is turned ON either. Buyers aren’t attracted to all white houses. At best, there’s no emotion. With the use of contemporary designer colors, however, these same people fall in love with the home. That’s the emotion that sells. When they love, they buy. And they fall in love with houses that are brought to life with full color.
Aug
29Discover the Benefits of Mountain Living with Western North Carolina Real Estate
Posted By: Ramon Rivas on August 29, 2010 at 1:18 pm
The pristine mountain views, the quiet, calm atmosphere, and the uninterrupted green settings provide plenty of benefits of their own. But you may not realize that there are also other benefits of mountain living.
Mountain Air Free from City Pollution
Doctors have often prescribed “mountain living” for patients with breathing problems related to lung disease or asthma. The reason for this is the mountains are free from bumper-to-bumper traffic, which results in fuel pollution in the air within big cities. Land for sale in Black Mountain, North Carolina is divided into spacious 10-acre lots with much of nature preserved for residents to enjoy. There’s no traffic or people congestion to contend with daily, and residents will have plenty of room to breathe.
Reduce Stress with Mountain Living
Mountain real estate offers much more than the clean mountain air. It offers a more peaceable, less-stressed life. Mountain dwellers often do plenty of walking and enjoy nature. They see nature first-hand day by day and are able to benefit from the natural therapy it brings after a stressful day on the job. Some studies have even shown that mountain residents are less likely to die of cardiac arrest.
Enjoy the Best of Nature
When living in the mountains, the best of nature is offered to your family at every turn. You can grow a garden, raise farm animals, chop wood for the fireplace, build tree houses, fish, go hunting, wade at the creek… all in your own backyard! Mountain living gives you your own natural paradise where you can teach your children about living in the wild and help them develop skills and knowledge that many city kids miss out on growing up.
Neighbors, Seclusion, and Plenty to See and Do
Developed mountainous areas such as those offered by Western North Carolina real estate agencies offer seclusion for each resident, but also keep the neighbors close enough by to create a sense of community. Residents of Black Mountain, North Carolina can enjoy a number of activities in nearby Asheville such as golf or the Biltmore Estate. They can take history trolley tours, tour a museum, enjoy downtown shopping, and more.
Asheville real estate or lots for sale in surrounding mountain areas can be explored through online resources without ever leaving your home. Or to physically tour beautiful lots for sale, Asheville offers a number of tourist spots so you can visit the area and tour real estate while on vacation, achieving two goals in one trip.
If you’re ready to enjoy the benefits of mountain living, discover the Black Mountain area and Western North Carolina real estate today.
