Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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Archive for August, 2010
Friday Fun: The Word – Borderline Personality
On Twitter yesterday, @RealSherriffJoe tweeted the following: “My buddy Stephen Colbert. I don’t know where he got this picture: http://tinyurl.com/37k2mb5“.
At the very least, you have to admire Sheriff Joe’s willingness to be the brunt of a parody on a nationally syndicated television show.Then again, one has to wonder how much ‘reality’ there really is in this particular video. Your thoughts?
The Colbert Report Mon – Thurs 11:30pm / 10:30c The Word – Borderline Personality Colbert Report Full Episodes 2010 Election Fox News What is my house worth in today’s market?
I hear or receive this question no less than 2-3 times per month. On the surface, it would seem to be a rather innocent, simple question. However, on deeper analysis it becomes infinitely more complex and convoluted than most folks imagine. I’ve decided to tackle this question – “What’s my house worth?” – and give you my personal and professional response to it:
Dear Homeowner,
I don’t mean to sound flippant, but what your house is ‘worth‘ depends on the opinion of the specific person evaluating your property. An appraisal is an opinion of one person, a licensed appraiser. A BPO (Broker Price Opinion) or CMA (Comparative Market Analysis) is an opinion of one real estate agent or broker. An offer submitted by a prospective buyer is yet another opinion of one person.
How many opinions of value might there be? >>> As many as there are people on the planet!
Here’s a reality check for you homeowners: Valuing a property is an art, not a science, and the folks who are best at this art are those who consider ALL of the factors relative to any given property. Here’s a short list of the 5 biggest factors to consider:
- Recent ‘comps’ (comparable sales) within the past 3-6 months that are reasonably similar to your property
- Major improvements, options or upgrades (or lack thereof), e.g., private pool, granite counter-tops, new roof, new AC, etc.
- Age of the home and surrounding neighborhood/subdivision
- Location of your property
- Curb appeal of your property
Beyond these, there are an infinite number of other factors and variables that can weigh on the perception of any given person. You simply cannot rely on the tax assessor’s valuation, Zillow’s Zestimate, or any of your friends, family or neighbors. You need the advice and counsel of an objective, third party professional who can give you an experienced, knowledgeable opinion. And even then, there is not one finite number that can possibly represent the TRUE value of your home – but a projected sales price range can be estimated by the right professional.
The best advice I can give you is to contact a local, experienced real estate agent or broker with whom you feel good, and that you trust. S/he should be able and willing to do the appropriate research and then counsel you regarding your options and objectives – and ultimately, the best strategy for YOU. Make sense?
Freaky Friday: Dead Fish Wash Ashore In Thousands For Second Time This Week
I am keenly aware that it’s only Thursday, but this news release was just too freaky to not post it immediately. This struck me as being somewhere in between Alfred Hitchcock’s The Birds movie and a comedic parody that The Onion might very well release. Either way, I can’t help but continue to wonder about how many ways we are endangering our planet – with ignorance and arrogance. Any thoughts or insight you’d care to share with me?
Exceptionally Low Interest Rates for an Extended Period Of Time?
Yesterday the Fed announced that they would like to see ”exceptionally low interest rates for an extended period of time.” They have committed to purchasing long term securities that directly impact mortgage interest rates. Experts see a need to help our economy recover and low interest rates are one tool in the Fed shed for promoting economic activity.
The last time the Fed did this was in early 2009, right around the time interest rates for long term mortgages went into free-fall! Rates dropped because the Fed’s purchasing presence spiked both the demand and price of mortgage bonds which directly lowers mortgage rates.
This latest development will likely provide reinforced support for what are already historically low mortgage rates. It may even provide enough pressure to push rates a bit lower. I don’t expect the dramatic decrease we saw when the Fed initiated this type of buying in early 2009. Overall, I do expect our interest rate market to flirt with historically low levels for some time.
Stay tuned, as I am sure there is more to come.
