Tax Assessment vs. Bank Appraisal

In a recent post, I talked about the difference between the tax assessed value of your home and the market value of your home. There is a third important estimation of value when you are selling your home or refinancing a mortgage, which is an appraisal.

An appraisal is typically called for by a lender in order to determine the true and current market value of your home. Banks need to determine this value in order to assess the level of risk in granting you a loan. I.e., the bank wants to know if your home is worth at least as much as they are loaning you, to ensure that they can recover their money if you should default on the loan.

A licensed appraiser uses methods similar to those used by tax assessors and real estate agents to determine value. Typically they will look for sales of comparable properties in the area within the past 3 months (that time frame may vary, depending on the strength of the local market). They will also visit the property in question to determine its condition in relationship to other properties in the neighborhood. If the appraiser concludes that the price being offered for the home exceeds its true value, the bank will not approve the loan. In this case, either the seller must reduce the price or the buyer must agree to reduce the amount of their loan and finance the difference some other way. An appraiser can also site specific work orders that need to be performed to bring the value up.

Questions or comments? Give me a call at 206-708-9800 or leave a comment here.

Showing Your Home in the Best Light

In this buyer's market, staging your home for sale is more important than ever as a tactic for attracting an offer. Furniture is only one aspect of staging. Lighting is another.

Following is a article written and provided by the folks at CSN Lighting with tips on how to light your home to give it the maximum visual appeal. I have permission to reprint the article here, in exchange for including a link to their website. This should not be construed as an endorsement of CSN products or services, as I have not yet purchased from them myself. If you have, or plan to, please let me know of your experience.

Showing Your Home in the Best Light
Making a good first impression is key when it comes to selling your home - especially in the current housing market. As you're preparing to put your home on the market, make sure that you leave some room in your budget for some well-placed lights.

Good lighting makes a huge difference how your home comes across to prospective buyers. Here are some illuminating tips on how best to light your home while trying to fetch the best price.

• The Foyer & Entryway:
You want the tone to be warm and inviting, not too bright or too dark. If you don't have one already, install a pendant light or mini chandelier, depending on the height of your ceiling. An attractive table lamp on top of a console table would work just fine as well.

• The Living Room:
The living room will likely be used for entertaining and relaxing, therefore it needs to be warm, homey without being too bright. If you have any extra table or floor lamps lying around in your basement, drag them out and dust them off. Lamps with dimmer switches work wonders in the living room, as they allow you to create a really nice, cozy atmosphere. Take down any heavy drapery while you're at it and let the natural light in.

• The Dining Room:
Like the living room, the dining room would benefit from a light with dimming capabilities - either a chandelier or a horizontal pendant light centered over the dining room table. The dining room is a gathering room so the lighting needs to be both stylish and functional. If you have a larger dining room, a couple of wall sconces might be a nice addition to your space.

• The Bathroom:
The bathroom needs to be brighter than other rooms in your home. In addition to some lights over or around your mirror, some kind of overhead light would be a good idea. You can install a combination light and ventilation fan for added value and benefit.

• The Kitchen:
The kitchen needs a good amount of work light, especially over the countertops and eating areas. Under cabinet lighting is a relatively easy and inexpensive option to consider. Not only does it provide ample work lighting but it also makes your granite countertops sparkle. A couple of pendant lights over the bar or island looks great and showcases the versatility of your space. A simple pendant or mini chandelier over the kitchen table also works wonders.

• The Bedroom:
The bedroom doesn't need too much in the way of supplemental lighting, perhaps a couple of floor fixtures or table lamps for your end tables. If you have curtains or blinds, open them up and let as much natural light in as you possibly can.

In terms of placement of your lamps, keep it natural. Don't cluster groups of lamps around your living room as this looks staged. Also, don't think that you need to spend crazy amounts of money on lighting. Just a couple of chic, stylish lamps placed in prominent locations around the home give your space the "it" factor it needs.

Sound View Townhome Open today 1-4

Need a short break from the sun? Pop into my Open House today, 1-4, at 4439 44th Av SW #C long enough to tour this wonderful 985 sq. ft., 2 bedroom/1.5 bath townhome. Listed at $308,500 by my Prudential colleague, Shari Kruse, it has a Sound view and is conveniently located just blocks from Alaska Junction. When you stop by, remember to ask for your coupon for a free ice cream cone from West Seattle's own Husky Deli.

Sound View Townhome Open today 1-4

Retreat from the heat just long enough to pop into my Open House at 4439 44th Av SW #C and see what you can buy for $308,500! This is a great 985 sq. ft., 2 bedroom/1.5 bath townhome (no Homeowner dues) with a Sound View. Just blocks from Alaska Junction -- convenient to all amenities. I'm giving coupons for a free Husky Deli ice cream cone to all visitors today, so come and get yours.

Cheap Entertainment!

If you haven't yet discovered that visiting an Open House can be a fun and inexpensive way to spend an afternoon, give it a try. I hear that some agents don't like "lookie-loo's", but I welcome everyone. I love to meet new people and maybe you will help spread the word about the house to other potential buyers.

Today, from 1-4, I will be holding open a 2 bedroom/1 bath 1940's rambler at 7719 31st Ave SW in the Westwood neighborhood. This particular home is listed by my Prudential colleagues, George Butterfield and Chris Koelling, for $300,000.

As usual, I will be giving away coupons for a free Husky Deli ice cream cone to all comers. Don't miss out!