GREAT INVESTMENT PROPERTY!!

Great Investment opportunity in this well established commercial/apartment building! Great return on 2 store fronts and 4 apartments. High traffic area! Great exposure.

Any questions, call Chuck Schaffstall at 716-472-7400. Allow 24 hours notice for showings.

Build or Buy? That is the question!

For the majority of home buyers today, a home purchase becomes a matter of compromise.  Is it more important to have an open floor plan or a first floor master suite?  Does a full finished basement have more value than a first floor office?  Several prospective home buyers have reluctantly admitted to me that they felt that the “perfect” home does not exist and that settling for second best or “near perfect” seems to be the norm.  I am here to reassure you that, as always, you the buyer have options. 

The majority of buyers are very happy to find a beautiful home, one that comes close to what they are looking for, in a welcoming neighborhood with many amenities, and at an affordable price.  Once they have cleared the hurdle of the home inspection, hopefully with very few problems, they are excited to proceed to the closing and to beginning a new chapter in their lives. 

On the other hand, some buyers are not content to settle for less than they deserve.  With the myriad of reputable builders in the area, featuring developments and homes suited to your specific tastes and finances, buyers are open to the realization that they can indeed own the home of their dreams.  Builders such as ZAMKRO, Ryan, Essex, Marrano, Alliance and offer home designs and layouts suited to the most discriminating buyer.  Buyers are able to select homes from a “production builder”, one who builds several homes in an area and buyers select from a variety of models for the home of their choosing.  Others rely on a “custom builder”, one who builds one home at a time only after careful discussion with the buyer as to their specific needs and wants.

Existing homes have the advantage of immediate occupancy in “move in condition” which many buyers prefer. They are a known product currently situated in a neighborhood, waiting for the right owners. New builds on the other hand need no updates or replacements of any sort. Buyers are purchasing the newest and latest in products, materials and features. Materials and finishes are better engineered and last longer than previous ones. Homes are far more energy efficient as new builds, saving owners money over the term of owning the home.  Buyers can decide exactly how they want their home designed, to meet their unique needs and interests.  Lastly, buyers of new builds have peace of mind that their home will not require any costly expenses, improvements or repairs while they are living there. 

Whether you decide to buy or build, it all comes down to a matter of preference.  This is to remind all buyers that options are available. You can only gain by investigating all your options, discussing existing homes in detail as well as speaking to builders. Visiting model homes in various developments and speaking to your real estate agent about what direction would serve you the best is a good start.  With the enormity of this decision never ignore all possible options.

Spring Fever - by Chuck Schaffstall of the Jay Coles Team

Are you tired of the cold? 

Are you wondering if Spring will ever get here? If so, you are not alone.  Many of us have cabin fever.   With the arrival of March, it is time to get out and explore.  No matter the season, Buffalo has so much to offer.  Here is just a small sampling of suggestions for a family outing.

  

If you have small children, the Shrine Circus will be in town March 13-16^th at the Fairgrounds in Hamburg.

   

Explore & More Children's Museum in East Aurora is a place worth visiting with small children.  It is a hands-on, interactive museum. The kids will love it. It is an inexpensive event the entire family can enjoy.  

 

If the cold weather has got you down, try spending the afternoon at the Buffalo & Erie County Botanical Gardens.  Your spirits are sure to be lifted.  

Looking forward to Spring?  Get some great gardening and landscape ideas at Plantasia-Party in the Garden at the Hamburg Fairgrounds from March 20-23^rd, 2014.  Discounted admission tickets can be found online. 

The Buffalo Home & Garden Show at the Buffalo Niagara Convention Center is also a worthwhile event.  It runs March 7-9^th  and March 14-16^th.  After visiting these events, you will be ready to tackle those Spring projects around your home.

Finally, how about visiting a museum or two?  The Buffalo History Museum, The Buffalo Museum of Science and the Albright-Knox Art Gallery are all located downtown. 

After taking in some culture, treat yourself to lunch on Elmwood and complete your day by visiting some of the Elmwood shops.  Elmwood has so much to offer.  There is something for everyone. Enjoy! 

  

Appraisals & Underwriters - The Final Word on Homes Value

 

 Written by Daniel Myers, Lic. RE Salesperson, RealtyUSA.com

 

In theory, an appraisal is an independent evaluation of a property by a neutral third party to determine its likely worth in the open market.

In practice, it has become the final word on a property’s worth, overriding the agreement between a willing buyer and seller.

 

How is it that estimation of value has replaced the actual sale as the ultimate means of deciding worth? Where now the tail has come to wag the dog? Really!!! Thank your governmental watch dog and the housing meltdown.

Appraisals are rarely ordered for cash transactions. Why? Because the buyer has already reviewed the recent sales comparables and negotiated the best terms he/she could with the seller before arriving at the final sales price. Of course, the same is performed by professional Realtors on financed transactions to protect both buyer and seller. Appraisals are requirements of (most) financed transactions because they are really not for the benefit of the buyer. They are an added layer of protection for the lender that is putting up the bulk of the purchase money. Certainly an understandable requirement from an institution that is taking on the risk of lending money against a property that may or may not represent suitable collateral, depending on the drooling factor of the buyer. The bank requires an appraisal to validate the purchase price before ponying up the cash; makes perfect sense. 

Where things have gotten a bit off-kilter as of late is in the bank’s internal review process of theappraisal. Back in the day, the appraisal came back at value, and you were good to go. Your shrewd purchase was confirmed by a non-biased review by a licensed professional. After the housing meltdown, however, banks have taken to assigning the bulk of the blame for the whole fiasco to unscrupulous loan originators and appraisers for falsifying loan applications and willfully inflating values, respectively; ignoring ridiculous loan products that were offered to people who never should have been candidates for stated income, interest-only financing vehicles, they are determined to stamp out any potential for fraudulent dealings that exposes them to similar risk in the future.

 

Tightened appraisal standards came to pass, including restrictions placed upon direct selection of appraisers (most orders go to faceless appraisal management companies now, who in turn select the appraiser.

 

The appraiser is now free to perform his evaluation in an ivory tower, unencumbered by the incentive-laden hands that would pull at him to bring in a value reflective of the sales price.

 

By using the veto power of the underwriter review, banks may demand that an appraisal which came in at value be reworked to use different comps or adjustments made to the physical attributes of the house that they dispute (square footage adjustments, etc).  They may demand that adjustments (downgrades) be made for market trends, etc.

 

In short, some bean counter in an office in South Dakota is dictating the final version of the appraisal to the licensed professional who has actually physically viewed, measured, photographed and evaluated the property.

 

 

What? Really... (you are thinking)....YEP.

 

 

This is how appraisals that initially come in at $400,000, only to get knocked down to $350,000 upon underwriter review. And when that happens? You get to appeal the appraisal … to the very institution responsible for the final disparity in value.

Akin to taking one’s death sentence appeal to the hangman himself. Good luck with that! 

 

Appraisers have little choice but to comply if they want to keep their accounts with the big banks in good standing. Further, until the underwriter signs off on the appraisal, it really doesn’t matter what value is reflected in it. He decides the house isn’t worth what you are paying for it, your loan is compromised. Unless the seller agrees to sell the property to you at the reduced price (unlikely in a market that is now generating bidding wars) or you have additional cash to plunk down to make up the difference, you are out the cost of the appraisal, inspections and emotional investment in the property.

 

What’s the best way to insulate yourself from the risk of an appraisal fiasco?

 1.  Be cautious of inflating offers too much with the addition of seller’s concessions. If the comparison homes used in an appraisal are in tight supply, the concessions may create a problem with loan to value.

 

2.  Also be cautious of including a large value of personal property in the sale of the home such as dining room sets and other expensive personal items. These items will be backed out of the appraisal value and may complicate matters.

 

3. The further the loan to value ratio gets pushed toward 100%, the greater the risk of appraisal issues. There is less “borrowers skin in the game” from the banks perspective.

 

4.  Buying highly “unique” properties, such as over-improved homes or those with very few such as multiple dwelling structures on one lot can also be extremely difficult to find comps for. The appraiser may be put in a difficult position, unable to find comparisons that the bank will accept.  

 

These are just some of the challenges to our new real estate economy. All the more reason to be guided by an experienced Realtor who can use their experience to navigate the experience as your advocate.

JUST DO IT!!

It's not like I don't have anything to say, and I'm never at a loss for words, but when it comes to putting a pen or pencil to paper ....... well, let's just say it's not at the top of my list of what I want to do today. 

The head of my Team "Jay Coles" at Realty USA, came up with the idea that each of us team members write a "blog" entry about anything we wish. To date, I think all of the entries have been about real estate, or relating somehow to real estate, but not today! 

 This one is about not wanting to write this, mixed with procrastination.  I say that because I was supposed to have it in by the 28th of last month.  I don't usually procrastinate but I'll speak more about that in my next blog entry which I don't feel like doing it today!

I guess the moral of this story is to plan ahead so I am not scrambling for subject matter.  I guess that's why I became a Realtor and not a writer.  So by the way . . . don't procrastinate . . . . list your home with the Jay Coles Team TODAY!!

Thank goodness I only need to do this every 6 months!

Stay warm everyone!