Will Your Agent Spot Renovation Disasters?
Posted by Hank Miller on
Appraising and being involved in real estate sales for over 30 years allows me to see epic "renovation" nightmares. The unfortunate side of this are the buyers who often expect their agent to flag issues. Will your agent spot renovation disasters? Well, that depends on if you properly qualified them, if they have the capacity to spot issues and whether they are more concerned with a commission or keeping you out of trouble.
This home was noted as "completely updated" and buyers of mine wanted to see it. The usual flags popped just off the desktop review but a base of knowledge is critical for buyers, looking at homes and seeing issues helps to better understand the process. This home however, was a graduate course in renovation disasters - and…
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from historic inventory shortages and home buyer frustration finally started? That argument can be made...and while the data lags by several weeks, the radar of many experienced agents is lit. The feeling in the field can't always be immediately confirmed but we're beginning to see the data evidence. It'll take a few more months as markets always tend to "feel" before the "proof"; that's just a challenge of the business. One thing that's not debated, the mortgage rate increases (with more promised) have been an ice bucket challenge to the market.
housing inventory in Atlanta increase during the first quarter of 2022? Well that answer is more than a yes/no binary option, context is needed and that’s best done by looking back a bit. The first quarter of any year around Atlanta tends to set up the second one. Traditionally, the months of May and June see the most new listings as the school cycle hits – graduating families sell and rising families buy. This year however, rocketing mortgage rates and other economic challenges may change that.
the basement wearing a mask, gloves and bicycle helmet waiting for instruction. Most folks look to mitigate risk but it’s a part of daily life. It’s also part of buying a home; successful home buyers embrace risk. "Measured risk” is a good way to summarize how buyers need to think right now as conventional tactics are simply not effective in this market (4/22).
$450K home in his sights but was annoyed with the price and having to compete with other buyers. He lost it. He then found two more solid fits at $465K and $445K, liked them and felt his offers were right on target. Losing both, he decided to wait for the "spring" market because he knows that prices will come down as inventory increases. While waiting, his mortgage rate went from 3.35% to 4.72%; a whiplash rise of 1.37% and one that forced Timmy's budget to decrease between $65K-$75K. Timmy waits; chin in hand with Lassie who is beyond pissed with him for blowing several good opportunities. "Surely the spring market will…
It’s hard to find a housing market not presently on fire, Atlanta is no different. Compared to a decade ago and the worst housing crisis ever, this market turn around improvement is among the tops in the country. The 2022 market could not be more different than the 2010-12 market...over 100K homes were on the market during the darkest days. The Atlanta real estate market explosion is due in large part to its broad appeal, size and vast selection of properties. The “Atlanta Real Estate market” is a misnomer; the area is akin to spilled glass of milk. With no natural boundaries, it sprawls over 8 to 16 counties depending on who sources the information. Each area is its own micro market but all contribute to the overall "Atlanta housing market".
estate market exploded and subtle fundamental changes began to appear. Zillow crashed in spectacular fashion, other iBuyers dabbled grew their presence a bit more and institutional investors decided they really love homes. Atlanta has always been an investor darling, but over the last couple of years, activity has exponentially increased. "They" know something...Wall Street is far ahead of the real estate curve and what they anticipate seems to be coming into focus. They're on a massive buying spree and tightening the chokehold; the impact on home buyers, especially in the Atlanta market, is brutal. Their…
tougher for home buyers, but they are. Many factors are at play/still in play so it's not all real estate related, but buyers don't really care what's causing their consternation; the fact is that right now (late Feb '22), buyers are stumbling and bumbling wondering how to get offers selected. It's a beauty contest and the most appealing offers are getting selected.
buyers are tossing off all constraints to "win" the beauty contest of buying a home. Appraisals below contract price will continue to be a challenge in 2022. Consider, appraisals this year will be using data from the already insane market of 2021 and many will still fall below contract. Remember, the buyer’s loan is based upon the lower of the contract price or appraisal. The appraisal contingency protects the lender – and indirectly the buyer – to ensure the home can be sold for at least the loan value. Buyers that waive or modify the appraisal contingency need to have cash on hand to make up any…
worth” will never end, because there is no standard answer. Sure the reflex text book answer is “what a buyer is willing to pay” but that’s hardly the complete picture. A home has a number of “values” and most are not tied to the buyers in the market. There is a best answer of course, it also happens to be the simplest one. Spoiler alert...it’s not what it sells for. This short clip provides a common sense overview, below that we get more into the weeds.