What To Do If Your Appraisal Comes In Low

Now that you have found a home that you want to purchase.  It is time to have an appraisal done.  But what do you do if your appraisal comes in lower than what you agreed to pay for the house? 

Here are a few things you can do to help push through a low appraisal.

1.  Appeal errors and / or bad comps - read the appraisal and see if you can find any obvious errors.  Human error does happen.  Perhaps the appraiser missed a bedroom  or miscalculated the square footage.  If this happens, it will skew the entire report because now the comps that were used are wrong also.

2.  Double check the comps - ask your agent to double check the comps that were used.

3.  Ask for a second opinion - if the appraiser ignores your request to revise his report, you may need to ask the lender for help.  If the lender believes strongly in your case they may be able to  talk to the underwriter and request that a second appraisal be performed .

4.  Renegotiate -  low appraisals are disappointing to everyone.  If the sellers have enough equity in their home, they might agree to lower the price down to the appraised value or close enough that the buyer feels comfortable putting more cash into the deal to close the purchase price-to-appraised price gap.  

4. Pay it or split the difference - if you have been looking for your new home for a while and you have finally found the perfect home, then you may want to just go ahead and pay the difference.  If the home has been on the market for a while or the seller has an urgent need to move, they may be willing to split the difference with you just to close the deal.

5. Maybe it's time to change lenders - mortgage banks have more control when it comes to choosing appraisers than mortgage brokers do. Many local mortgage brokers work for companies that also have banking divisions, and may be able to get your loan processed through that division in an effort to give your transaction a fresh start and work around a low appraisal.

It can be challenging when the home you have chosen to purchase does not appraise for the contracted sale amount.  Talk to your realtor.  Your agent has the experience to deal with low appraisals and will be able help you through this and get you into your new home before you know it.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

What To Do If Your Appraisal Comes In Low

Now that you have found a home that you want to purchase.  It is time to have an appraisal done.  But what do you do if your appraisal comes in lower than what you agreed to pay for the house? 

Here are a few things you can do to help push through a low appraisal.

1.  Appeal errors and / or bad comps - read the appraisal and see if you can find any obvious errors.  Human error does happen.  Perhaps the appraiser missed a bedroom  or miscalculated the square footage.  If this happens, it will skew the entire report because now the comps that were used are wrong also.

2.  Double check the comps - ask your agent to double check the comps that were used.

3.  Ask for a second opinion - if the appraiser ignores your request to revise his report, you may need to ask the lender for help.  If the lender believes strongly in your case they may be able to  talk to the underwriter and request that a second appraisal be performed .

4.  Renegotiate -  low appraisals are disappointing to everyone.  If the sellers have enough equity in their home, they might agree to lower the price down to the appraised value or close enough that the buyer feels comfortable putting more cash into the deal to close the purchase price-to-appraised price gap.  

4. Pay it or split the difference - if you have been looking for your new home for a while and you have finally found the perfect home, then you may want to just go ahead and pay the difference.  If the home has been on the market for a while or the seller has an urgent need to move, they may be willing to split the difference with you just to close the deal.

5. Maybe it's time to change lenders - mortgage banks have more control when it comes to choosing appraisers than mortgage brokers do. Many local mortgage brokers work for companies that also have banking divisions, and may be able to get your loan processed through that division in an effort to give your transaction a fresh start and work around a low appraisal.

It can be challenging when the home you have chosen to purchase does not appraise for the contracted sale amount.  Talk to your realtor.  Your agent has the experience to deal with low appraisals and will be able help you through this and get you into your new home before you know it.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

How To Win The Bid When The Home Of Your Dreams Receives Multiple Offers

It is heart wrenching to know that you have found the perfect home and then learn that there have been several offers submitted in addition to yours.  So what now?  Is there anything you can do to help give your offer a boost to the front of the line?  Yes, there is! 

1.  Offer more than the asking price - the chances are very likely that the other offers submitted are at or below the asking price -especially in the current market of bargain seeking buyers.   Just remember to offer a higher asking price only if the market data for the area can justify your offer.  If it doesn't, then you are just asking for trouble later on down the road if you submit an offer that is not in line with the market price for the area.

2.  Show proof of your ability to close the deal - a deal that does not close is no deal at all.  Sellers are very aware of the high rate of contract cancellations and credit problems.   So if you can show proof that you are credit worthy , can easily be approved and you submit an offer higher than  the asking price,  you will then have a much higher chance of getting  the winning offer.

Here are a few more things you can do to solidify your offer:

• offer a shorter contingency period

• show proof that the areas comps can support your over the asking price offer - this will minimize the risk of the home getting a lower appraised value than the offer you are making

• make an all cash offer or a  high-down payment offer

• offer to purchase the home as-is

• get the inspections, appraisals or repair bids prior to  making an offer and waive any contingencies up front

All of the above recommendations are contingent upon the right situation.  Please work closely with your real estate agent to help you determine when these recommendations are a good idea and when they are not.

3.  Always use a highly respected real estate agent and mortgage professional -  it is to your advantage to work with an agent that all of the agents in the area know and like.  This could work to your advantage and could give your offer a boost.  The seller and their agent will feel more comfortable accepting an offer if it is coming from a well known and well liked local agent.

4.  Let the buyer know how much you love the home - most sellers are very passionate about the place they have called home for so many years and will not want to sell it to someone that does not love it as much as they do.  So write a letter to the seller letting them know how you feel about the home and paint a picture for them about why you feel it would be such a perfect place for you and your family.

This is the time you really need to rely on your realtor to help you achieve the winning offer.  Talk to your agent about everything you need to do to secure this house.  They will be more than happy to do everything in their power to help you win!

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

How To Submit A Fair Offer Price

Have you found a home that you would like to make an offer on?  But are not sure how much you should offer without offending the seller and still get the best deal you can possibly get?   This question is one that puzzles most everyone that has ever bought a home.  So let's talk about what consists of a "fair offer price".

You already know the seller's asking price so that is the easy part.  But how do you go about figuring out what to offer?  Here are a few steps you can take to determine a fair offer price.

1.  Look at what recent homes have sold for in your area.  Don't look at what they listed their home for but what they actually sold for. 

2.  Remember as you are looking at this data to also look at the condition of the homes, the improvements that were made to those homes, the current conditions of the market and the reasons for the sale of those homes.  For example, was the seller desperate for the sale etc. as this can play a major role in the sales price and can skew the numbers if you are not careful.

3.  Check the current competition in the area.  Are the comparable homes close to the one you are looking at, is the home comparable in square footage, the number of bedrooms and bathrooms.  Is the garage the same size.  Is the property lot the same size.  Also, look at the type of home it is - is it the same type of construction.  If it is a tract home with many other exact same homes in that area, you will be better able to compare it against an exact match for the most part.  

It is really important at this point in the home buying process that you sit down with your realtor and go over all of this information.  Your realtor knows the market inside and out and can advise you on how to put together a fair offer price.  You really don't want to do this without the help of a licensed professional.  Your realtor has access to resources that you don't to help determine what should be factored into a good offer.  Remember, if you get this step wrong it could cost you thousands of dollars over the life of the loan.  So talk to your realtor today.

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How To Determine How Much Home You Can Handle

Buying a new home is a very exciting time.   But trying to figure out how much house you can handle may be an even bigger challenge than you can imagine.  So let's talk about the best ways to help make that decision and keep yourself in check.

1. Look into your future -  where will you be working for the next seven to ten years, how much do you expect your family to grow etc.  Sometimes people err on the side of caution a little too much.  They will buy a home that suits them just fine for now and they think they are saving money.  But the truth is - you should be buying a home that will suit your needs now and for the next seven to ten years. It will cost you more in the long run if you outgrow your home and have to go through the time and expense of having to move again.  

2.  Don't buy too much home - following in line with the above statement - you don't want to buy too much home.  A home that is more than you will need for years to come.  Remember, a larger home means more to heat and cool, more repairs to be done, more landscaping and the property taxes will be higher just to name a few.  So think about the future but make sure you don't go overboard.

Here are a few things that will help you make your decision about your future home wants versus your needs:

• marriage or co-habitation

• having children or adopting a child

• what kind of pets will you have and how many

• how soon will your kids be leaving home

• will your adult kids be staying at home or returning home

• do you have aging parents or other extended family moving in

• how long do you plan on staying at your current job

• what activities do you enjoy that will require a certain space in or around your home

• do you plan on renting out the extra space in your home

3. What about maintenance and repairs -   do you have money saved for unexpected repairs and ongoing maintenance items or do you have the ability to fix things yourself.

4.  Homeowners association fees - don't forget to factor in any homeowners association fees and possible future increases in those fees.

5.  Financial sustainability - do you have the means to pay for an unexpected interruption in income someday and did you take into account that property values generally increase each year resulting in higher taxes.

As you can see, there is much to think about before buying a home.  Talk to your realtor about helping you determine how much home you can handle.  Your realtor deals with home buying and selling every day and will be more than happy to help you come up with a detailed plan for buying a home that will suit your needs now and into the future.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800 ��yd
e�bll be more than happy to help you come up with a detailed plan for buying a home that will suit your needs now and into the future.

How Financing Can Effect Your Offer

If you are like most people, and you want to buy a house, you will need to secure a mortgage loan to finance the purchase of your new home.  But did you know that this step could also cost you the offer if you are not properly prepared?  Let's talk about financing and how it can affect your offer.

Since you will be depending on financing for the purchase of your home, the seller has the right to know exactly how you are going to go about doing this.  So you must make your financing details part of your offer.

Here are a few things you will need to spell out in your offer.  The more details you include the less chance there is for a misunderstanding later.  Additionally, this will help to solidify your offer as well.

1.  How much are you going to put as a down payment - you will need to include the amount of your down payment as part of your offer.  It is easier to get approved for financing when you make a larger down payment.  This will let the seller know that you will be more likely to get approved for your mortgage loan.

2.  Include a maximum acceptable interest rate as part of your offer - sometimes interest rates can suddenly rise and this means that you would have to pay a higher mortgage payment than you originally thought.  So it is vitally important that you include in your offer the maximum acceptable interest rate you will accept.  This would allow you to cancel your contract without penalty if the rates make a huge jump.

3.  What about the fees such as closing costs or any type of financing incentives - if you are going to ask the seller to pay part or all of the closing costs or you are asking for some other type of financial incentive, you will need to include this in your offer.  It is common for a buyer to ask the seller to provide this type of incentive to close the deal.  However, this will more than likely limit the amount that the seller is willing to negotiate on the price.

4.  Will you be asking for seller financing - another option for a buyer is to ask the seller to help facilitate a portion of the financing of their home.  This is called a "carry back" - this is a second mortgage for the buyer that enables them to combine their down payment along with the money that the seller will be financing for the buyer in order to put a larger down payment on the home.  This could possibly help the buyer to avoid having to pay for mortgage insurance.  This will  need to be included in your offer.  You will also need to let the first lender know this as well so they can underwrite your loan within their requirements.

5.  Are your going to be paying cash for the home - if you are going to be paying cash for your new home, you will definitely want to include this in your offer.  You will be required to show proof of funds however.  So make sure you have all of the funds before going this route.  If you don't have the funds now but you will at a later date, then you will need to give an estimated time until you will have the cash in hand.   Usually a bank statement will suffice for your proof of funds.

There are many ways that the financing of your loan can affect your offer.  It is a good idea to let the seller know whether you will be using a fixed rate mortgage or an adjustable rate mortgage.  Additionally, you should specify whether you will be obtaining conventional financing, a VA or an FHA loan.

Talk with your realtor about the best ways to write a winning offer.  Your realtor deals with buying and selling homes every day and will more than happy to guide you in the right direction.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

Rent or Buy? How to Make the Right Decision

With persistently low interest rates and desirable prices—even bargains in some locations—there are a lot of great reasons to buy a home in the current real estate market. However, deciding whether to buy or rent is a serious, often complicated decision, which should be weighed carefully.

A professional, experienced real estate agent can help guide you through a rent vs. buy analysis based on your particular circumstances. In the meantime, the American Bankers Association (ABA) suggests asking yourself the following critical questions when considering a home purchase:

1. How much can you afford to put down? Can you afford the monthly payment? A mortgage down payment of 5 - 20 percent of the selling price is typical, but can vary depending on the situation. The size of the down payment will impact the monthly cost. Assess your financial health, determine how large of a down payment you can afford and consider if you can then afford the monthly cost.
2. What other debt do you have? Consider all of your current and expected financial obligations and ensure you are able to make all the payments. Aim to keep total rent or mortgage payments plus other credit obligations less than 35 - 40 percent of your monthly income. If you can't keep payments below that, you may be better off renting for a while or searching for a more affordable home.
3. What is my credit score? Can I qualify for a good interest rate? A high credit score indicates strong creditworthiness, which qualifies you for better interest rates on a mortgage. Maxing out your credit lines and paying bills late will lower your credit score, and the impact of a credit score on interest rates can be significant. For instance, a borrower with a score of 760 could pay nearly 2 percentage points less in interest than someone with a score of 620. That equates to over $3,000 less in mortgage payments each year. If your credit score is low, you may want to delay buying a home and take steps to raise your score.
4. How much will taxes, monthly maintenance or other fees cost? Owning a home means you will have to pay real estate taxes and other costs like insurance and maintenance. However, owning a home can bring tax savings at the end of the year. Remember to factor in these costs and incentives. Renters have neither these costs nor tax advantages.
5. How many years will I stay here? Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your house. For renters, there is no equity or investment value. Yet, renters have greater flexibility to move as they don't have to worry about finding new tenants.

If it turns out that it may be better to wait a bit before buying a home, keep in close contact with your real estate agent, who can help you make the move to homeownership as soon as possible.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800