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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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.
across Georgia, flood control is a significant responsibility of theirs. Georgia Power is the largest non-governmental provider of recreational facilities in Georgia. Power generation is their key role and one that they do exceptionally well. In North Georgia, the Tennessee Valley Authority has influence over the lakes close to the Tennessee border, using them for power generation and flood control. All have a role when it comes to buying a lake home in Georgia.
and the foundation was failing in several areas, spectacularly so. Based on a thorough look around the entire basement and the site, two major issues stuck out: tree roots and very poor water management. Several trees are very close to the home and good sized roots were against the home in several areas, these are a constant source of pressure as the tree grows. Poor control of surface water is always a recipe for disaster; it's the cause of a multitude of issues. In this case, the two combined and the result is epic deflection of the walls in this foundation.
the most quoted "sources" when home values are discussed but it is so flawed that on any level, it cannot stand even the softest of challenges. In fact, price per square foot is so unreliable that it makes automatedvaluation models (think Zestimates) look reliable.
out of the property. In an ideal world, the driveway is easily accessible, flat, and easily used. In the real world, most driveways don't hit every positive aspect. The challenge then, is what characteristic is considered adverse and negatively impacts value and/or marketability? If people are intimidated or put off by the driveway, it doesn't matter what the home has going for it. This video examines a home in a mountain community of North Georgia. Settings like this are common not only here but in all mountain communities...and they present a challenge.
