The Q & A Our Clients Have Been Waiting For
When it comes to being in the realtor business for as long as Patti and I have been, our associated and ourselves get asked numerous questions about what goes on in the real estate world. Some, simple and straight forward, while others tend to be a bit more tedious and complex, however, with the years of experience we have attained as our careers progressed, we are prepared to answer any and every question you may have for us. Below is a Q & A with the questions we get most asked on a daily basis. If there are any other questions you may have that we didn’t answer below, please feel free to give us a call and we will gladly try our best to answer them!
1.Appraisals, should we protest them?
Patti: I think right now with values going up, it’s going to be hard to protest at central appraisals. There’s nothing that we could show on our market that values have gone down, and while nobody wants values (tax wise) to go up, because that means next year, you’ll probably pay more property taxes. The good point is that it means you’ve built in some more equity in your house.
Dan: I think the other side of that might be, yeah go ahead and protest. It may be difficult, and you may not get the reduction that you want, but any reduction is going to be helpful. So, I would suggest, yeah protest.
2. What can I do to make my appraisal stand out?
Patti: If you’re the buyer, we are in a very strong seller’s market right now, so it is difficult to get that winning bid. If there’s 10 offers on a house, only one person is happy, and all the rest are really upset. So, things to make your offer better are coming in at list price or above. I personally don’t want to go too far above, because that means you could have some appraisal issues, but we’ll see what happens there. Being per-approved is probably the most important. If you don’t have a per-approval letter when your offer is submitted, it probably won’t even be submitted to the seller. Another thing is not asking for anything. You know our traditional market in El Paso is sellers always help with closing costs. They don’t have to do that now, so if you need help, it’s going to be very hard to find a seller that’s willing to do that. Those are probably the most important thing. Another thing that we like to do is call the agent and see what’s important to the seller. Do they need a longer closing date? Or do they need time to lease back? These are all important things to know when you’re making an offer.
Dan: I think it’s also very important that buyers understand that there’s going to be multiple offers more than likely on anything that they are wanting to buy, but your ideal home will be out there. However, you have to be realistic, and by that, I mean if the house is priced at $200,000, you’re not going to get it for $200,000. That’s just the reality of the market today. You are going to have to go above, but you have to be realistic in that if it goes too high, and you bid on it, then you may have an appraisal issue could wind up costing you extra money. Being aware of that information and knowledge is one of the keys to being successful in this marketplace.
3. What is the initial process to buy a home?
Patti: The initial process like we said earlier is getting pre-approved, so we know what price range that you qualify for. Right now, I would say if you qualify for the $200,000 range, let’s look in the 160-200 range. That way, if you feel you have to pay over a pray over the list price to get it, it’s still in a value that you qualify for.
4. What is the initial process to sell a home?
Dan: I think that is the critical situation today because everybody thinks that all I have to do is put my house on the market at any price and it’ll sell even above that. The reality of it is, is that there’s two things. It’s that most agents are going to do market analysis on the home prior to you writing an offer. So, they’re going to have a pretty good idea what this home may appraised at and what its true value is. So, you have to be realistic when you put your house on the market, to make sure that you’re just not inflating the price because you think the market is just crazy. There’s going to be some checks that take place during this whole process. One of course is going to be the appraisal. The appraisal is very critical because the bank is only going to lend whatever the appraisal is, minus what they require for your down payment. Anything else is going to have to be cash out of your pocket. So that buyer needs to be aware of that, but the seller needs to be cognizant of that. That’s why you can’t just throw a price out there and say, “it’ll sell”. It may and you may get a contract on it, but will you ultimately get it to closing? That is probably suspect.
5. Why Dan Olivas and Associates?
Patti: I think we have a very good track record. We’ve been doing this a long time. Please feel free to check out our testimonials on our website. We have some very satisfied clients from both buyers and sellers. We’re great negotiators, and we want to make sure if you’re the seller you get the top price. Obviously if you’re the buyer, you get a home more importantly.
Dan: I would throw in that this whole process is about you. It’s not about us, it’s about you, but it is about the experience that we bring to the table. That experience comes and pays off in spades to you, because of what Patti just mentioned. We’re good negotiators, we understand our city that we’re very involved in the city, whether it comes to education, economic development, whatever it is. We are at the tip of the spear in having worked in this and being involved in it. Our community is very personal to us, and so are you.