Brian Kusmer 2013-05-03 00:20:33
What’s the Value of Your Home? Brian Kusmer is a long time Scottsdale resident where he resides with his wife, Amber, and their three children. As a local realtor, he is responsible for the sale of tens of millions of dollars’ worth of real estate each year. His clients vary greatly from investors to homeowners to commercial real estate and land development clients. Over the last 15 years, Brian has received many accolades, honoring his competency as a realtor. As a Re/Max agent, he was honored in the Re/Max Hall of Fame, the highest tribute available. He has also earned the Lifetime Achievement Award. Brian previously collaborated with a world-wide direct sales company, providing motivational speaking and consulting for sales training. Currently, he is a member of the HomeSmart Elite Group and is a recipient of the Diamond Club Award. Brian can be reached at 602-469-5823 or at email@example.com. For more information feel free to visit www.teamkusmer.com. Many people ask me, “Hey Brian, how is the real estate market?” What they are really asking is “What is my home worth?” The answer to that is that it depends on where you live. When we talk about percentages of increases in the valley, certain towns, subdivisions and even streets within a subdivision can vary. We can look at trends, but they do not always equate to increases or decreases in the value of your property. So, “how is the market?” is a very diverse and interesting question when it comes to residential real estate in Maricopa County. In our ever-changing real estate market a lot of people really have no clue what their real estate is worth. With some of the pricing I’m finding on the MLS, a lot of real estate professionals can’t keep track of what values really are either. There are several factors which will determine what a single residence is worth: • List price of homes in your neighborhood • Conditions of the listed and sold properties in your neighborhood • Distressed vs. non-distressed sales • Concessions to buyer or seller • Number of days on the market • Percentage of increase of like-kind properties over the last six months • Locations such as hillside or lakeside community or backing to a golf course I have a couple of recent examples that really shed light on the ever-changing market and how strong our market is becoming. These examples are in two different price ranges and show the difference between what appraisers are valuing homes at and what the buyers are willing to pay based on supply and demand. The first example is of a buyer purchasing a very unique property just north of Northern and 18th Street. It was professionally remodeled, redecorated and landscaped and had been featured in several home magazines. It was elevated on a mountain with full views of Piestewa Peak and the beautiful city backdrop. An initial appraisal was improperly done; the comparables in the neighborhood really weren’t comparables to this particular home. It was matched up to short sale and foreclosed properties with similar square footage, but without the views and professional landscaping. The buyer had it contracted for $446,000 and there was a backup offer for $455,000. Even with all this information, the appraiser still set the value of the home to be worth $365,000. Because of the real estate crash and the scrutiny that the appraisers felt for over-valuing properties during the real estate boom, they are now under-valuing properties to protect themselves from any potential lawsuits. In the second example we find ourselves in Paradise Valley. This homeowner was going to sell his home himself. The first step he took was to call an appraiser. The appraiser valued his home at $1,350,000 and proceeded to verbally tell him that he may get as high as $1,500,000 for his home. The seller was going to list his home for $1,500,000 For Sale By Owner (is like going to court without an attorney and that’s a separate article which you will read about in the future). Fortunately, I was able to speak to the seller just before he listed it. After an analysis of his property, I determined his home was worth $1,700,000. In the end, the home sold in six days for $1,665,000, which was $315,000 over the appraiser’s value. The natural boom and bust of the real estate market has put appraisers on the defensive, which is why homeowners need to consult a professional who fully understands the changing market. While getting an appraisal may be an important first step, getting a broker price opinion (BPO), is essential to assessing the full value of your home.
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