ICAP’s Immediate Past President is featured in the Chicago Tribune
In a March 16, 2012 Chicago Tribune Article titled “When good deals go bad, tips to keep your real estate transaction on track” Kari Richardson gives a few appraisal strategies to help keep a deals on track.
The following is an excerpt from that article:
After languishing on the market for months, a buyer has finally signed a contract to purchase your home. Think congratulations and Champagne are in order?
Or try this scenario: After months of open house appearances and weekend dates with your Realtor, you’ve finally found a place you’d be proud to call home and signed a contract to buy. Think you’ve arrived at the finish line? Maybe, maybe not. Survey data from the National Association of Realtors found that 33 percent of its member agents reported a contract failure in December, up from 9 percent in December 2010.
The statistic highlights a new truth of a topsy-turvy housing market: It ain’t over till it’s over. Jittery buyers, a glut of short sales, financing hurdles and an imbalance of power between buyers and sellers mean the difficulties of selling a home extend well beyond the time a contract is signed. It used to be unusual for real estate contracts to fall through, said Naperville real estate attorney Dan Collander, who’s been practicing since 1979. Although he doesn’t keep a formal tally, he estimates that 5 to 10 percent of his deals now fail to close for one reason or another. The buying or selling finish line isn’t a signed contract; it’s closing day, when the property formally changes hands.
The strategies Kari mentions regarding real estate appraisals are:
Before closing day, the home being purchased is appraised by a certified professional. And in today’s up-and-down real estate market, appraisals sometimes come in at less than the agreed-upon sale price.
This can create friction between sellers and their buyers, who typically don’t want to pay more for a home than its appraised value, McAuley said. Buyers also may not have enough cash on hand to make the purchase, since the appraisal affects the amount of financing they can get.
McAuley heads off trouble by being on hand when the appraiser visits a property she’s sold, armed with facts about the home and information about comparable listings. Since she frequently sells condos, she makes sure to point out, for example, if her property includes a parking spot when similar listings do not. These steps, she said, help ensure a property is appraised at fair market value.
To read the full article click: http://articles.chicagotribune.com/2012-03-16/classified/ct-home-0316-deals-derail-20120316_1_home-inspection-sellers-buyers/2