​Home values are appreciating right now due to buyer demand being strong and available inventory being low. It's economics 101 - high demand + low supply = rising prices. It's not all good news though. 

Every type of real estate market comes with it's own challenges, and the strong buyers market is no exception. With nationwide appreciation predicted to be 4% this year, banks and appraisers are struggling to keep up with rising prices and proper valuations.

Appraisers look for comparable type properties that have sold with in a recent time period to help them establish and appraised value. When prices are rising, the sale prices of recently sold homes can be lower than the current market. This can cause appraisals to come in under what the market value may be in today's market. 

While appraisers try to take this into account, they are encouraged by banks to be conservative and not get ahead of the market.

This can be exacerbated by buyers agents and buyers offering full price or above price bids on available homes to try to get the deal. Appraisers then have trouble finding comparable prices to support the price on the purchase offer.

As always, the markets have a way of sorting this out and things will even out soon enough.

In the meantime, it's a great time to sell! If you're thinking about selling, call or text me at 419-779-6229, I'm a 30 year veteran of real estate, and will help you get top dollar for your home.

​Home Owners Associations for condos and villas, part 2, gives more background and information to help you insure that your experience with an HOA turns out to be positive.

An important early task for a potential buyer is to get a copy of recent HOA board meetings to see if there are any recurring or negative issues regarding life in the neighborhood. Also, check to see if there is any legal history available to give you guidance as to what type of issues have arisen and how they were resolved. 

Another area to investigate is whether the association is professionally managed or homeowner managed. Both can be effective, but professionally managed associations can sometimes be better run and more equitable in solving problems.

Also check to see if the association has some sort of catrostrophic insurance coverage. You don't want your association blindsided by a major event that is not covered properly by insurance. This applies more to condos than to villas, where you are normally expected to carry your own castrophic insurance. 

If you are considering purchasing a condo or villa because the price of entry is lower than for a single family home, make sure your budget can handle the HOA fees in addition to your mortgage.

Finally, know what's restricted before you make the leap. Each association has it's own rules about what you can and can't do. Don't assume anything!

Give us a call at 419-779-6229 for more information. We'd love to help!

Home Owners Associations and fees are part of ownership of a condo or villa. 

We're frequently asked what the difference is. When you own a condo, you basically own everything inside starting at the walls. Typically, then the outside is the responsibility of the home owners association. With a condo, the association must maintain the roof, exterior, any land and landscaping, snow removal, and other common areas.

With a villa, the association, typically, only owns and is responsible for lawncare and snow removal. You are responsible for outside paint, the roof, doors, landscaping, etc.

Not surprisingly, condo fees are usually significantly more than villa fees because of the added responsibilities of the association. The association also should have a capital reserve for repairs and replacements of things like fencing, roofs, exterior paint, etc. Sometimes, if not enough money is available, there will be a periodic special assessment to cover something major like reroofing an entire development.

If you are considering buying a condo or villa, be sure to investigate fully. Review the rules, regulations, restrictions, and financial statements. A sound association provides long term value for it's members.

Also, consider how you would fit with the life style of condo or villa living. Some people are averse to too many rules and regulations. If that's you, consider something else!

Finally, insure that any condo or villa you are purchasing is in compliance with the current rules and regulations so that you aren't surprised with an unexpected bill to bring your new condo up to compliance.

​Home Owners Associations are common place in most modern real estate developments and subdivisions.

Their purpose is to manage the corporation that is usually set up that dictates the rules, regulations, and restrictions the original developer had in mind when creating the development. 

These rules typically cover things that involve the uniformity of appearence of a neighborhood to make it a more visually pleasing place to be. 

Things like mail boxes, signage, subdivision identity monuments at the entrance, parking of certain vehicles like RV's and boats, outbuildings, and sometimes, landscaping are among the things that the developer incorporates into his vision of the neighborhood.

The association is then tasked, through it's board of directors, with maintaining the general esthetics of the neighborhood as spelled out in the articles of incorporation - the rules, regulations, and restrictions.

The board is also many times responsible for maintaining a rainy day fund to cover any unexpected contingencies so that, at all times, the homeowners investment is protected.

Home Owners Associations in single family developments and subdivisions, are similar but not the same as those connected with condominiums and villas.

For more information about homeowners associations or if you have a question about a specific associations, give us a call at 410-779-6229.

​Something that can be a big surprise for a potential home buyer is being confronted with a multiple offer situation when you don't expect it. Our current market, Spring 2018, is rife with these situations as there is currently a very low inventory of available homes for sale in combination with a far greater number of potential buyers. Here are some hints to consider if you find yourself in this situation:

1. If a property comes on the market that you could be interested in, look at it as soon as possible if not immediately. There are other buyers out there in the same situation as you who want to buy but can't find a home. Make sure your agent has you set up on a notification system that sends you an email each time a home matching your requirements hits the market. 

2. Make sure all your mortgage loan preliminaries have been taken care of and that you have a written pre-approval letter from your mortgage lender. If you can't prove financing, your offer will be discarded.

3. Be prepared to present a strong offer. Sometimes there will be multiple buyers considering a home at the same time and even though you may be first to submit an offer, if other offers appear before yours is accepted, you'll find you and a multiple offer situation. You'll be asked to submit your last and best offer. This is where you'll have to make a decision.

4. Don't let your emotions cloud your judgement. This is a business transaction. You must decide if you really want the home or not and what you're willing to pay for it. Then you have to accept the outcome.

5. The good news is that there are always more homes coming on the market. Even if you miss out on one, something just as good might be ready to pop up next! 

6. If you really, really, really want a particular home. You might try writing a letter to the seller telling them how important the home is to you and your family. 

There are a lot of factors that go into the sellers decision about which offer they will accept. Things like cash offer vs conventional loan vs goverment loan (FHA, VA, USDA), terms of possession, inspections, etc. can all affect the sellers decision.

We've been doing this over 30 years and have been through markets like this before. An experienced agent can be your best asset in this situation. Call us at 419-779-6229 and we'll be glad to help!