Costs of In-ground pools
An in-ground pool can cost $20,000 - $50,000. It may even cost more depending on quality and how ornate a home owner gets. Pool houses are large costs as well. So what are they worth on an appraisal? If you own an in-ground pool, it may be hard to hear but an in-ground pool is worth what a typical buyer is willing to pay for one. Some buyers do not want a pool and may even consider filling it in upon purchase. Some buyers would love to have one for their family. Because these have mixed feelings, appraisers tend to see how in-ground pools react in your market. Are homes with in-ground pools selling for more? for less? the same? Are these pools larger, smaller? Can that size be found? Many of these questions are considered when developing an adjustment value. Depending on your locale, adjustments will vary but rarely will they equate to what it cost to install an in-ground pool. In summary, the cost does not equal the market value. The value of a feature can be extracted by similar sales in the neighborhood. Asking local realtors how homes with pools in your area do may give you a sense of value.
Equity, PMIs and LTVs
First lets define the word "equity" which is really just the shorten form of "home equity". Home equity is essentially the amount of ownership that is in a property. Basically its what the property is worth in the current market value minus the mortgage value. Its virtually rare to get 100% financing, but for this example lets say you purchased a home for $200,000 and took out a mortgage for $200,000, your home equity would effectively be $0.00 or 0%. This is why its imperative to get a great deal on a home. Any property bought below current market value is instant equity. There are many things to consider. Its clear that as you pay down your mortgage, your home equity will increase. This inverse relationship would be simple enough but you are also impacted by the market. This could go both ways and the market is affected by several factors. Whatever the reason may be, the market is never stagnant. That being said, your property value and or home equity are never stagnant. It may change nominally over the years or may not. LTV or Loan to value is an acronym you want to be familiar with. If you are looking to have PMI (private mortgage insurance) removed, the banks traditionally want to see a LTV lower than 80% or so (see your lender for details). This is a less risky loan for the lender to hold which would be the considering factor to remove the PMI. So if you bought that home for $200,000 and borrowed $200,000, mathematically, this ration would have to be less than 80%. either your home appreciates to be worth more than $250,000 and you still owe $200,000 (200,000/250,000 = 80%) or your house is worth $200,000 but the note is paid down to… Continue Reading
Cover Those Shoes or Boots Before Entering
Home can be both near dilapidated or a thing of modern beauty. This speaks to the several industries of service people that enter another person's home. No one that enters your home should disrespect you by leaving their shoes or boots on. This doesn't pertain to vacant homes on the verge of falling down, but this is speaking to the homeowner who is refinancing or getting a home equity loan and require an appraisal. Pilgrim Colonial appraisers will almost always wear shoe covers. Especially during the winter time its important for us to ensure your home is the way we left it. In a day where service is seemly becoming more cursory, we take a moment to "take our shoes off" so-to-speak and value our time with you.
The Brevity of An Appraiser’s Inspection – Just the Beginning
Pilgrim Colonial Appraisers take pride in chatting with the home owner or realtor to get to learn more about the property. Building rapport goes a long way with us. Often times we hear how we spent longer than any prior appraiser. Appraisers do appear to be brief because their inspection isn't exhaustive. Its misconception to compare an appraiser to a home inspector. Although an appraiser tends to review similar traits about the home, the appraiser is focusing on quality and condition of the home while verifying what public data is listed on a home. Home inspectors get into specifics such as looking into your walls for the type of insulation. It is also a misconception to think that the appraiser only spent 1 hour or less on the job. That inspection time is only the beginning. Typically an appraiser does prior field work on a home gathering several sources of data about the home and location. After an inspection is done, the appraiser has to go to work finding suitable comparables to compare your home to. Some superior and some inferior. An exact match would be ideal, but in the real world appraisers do what is called bracketing. By bracketing, they gather both a high and a low (particular) aspect of your home. Adjustments are made to formulate an opinion of value. Alongside with some macro and micro market data, the appraiser considers all these sources to create a report that is sent to your lender. Some appraisers can spend an entire workday on one appraisal. Give them the benefit of the doubt. Although they were not in your home for several hours, a detailed report is crafted for your lender.
