How are San Diego Homes Appraised?
Appraisers start the process by gathering information about the house. They measure square footage of the home and the lot size. They note the amount of total rooms, bedrooms and bathrooms as well as the overall condition and age of the house. They check for major and minor issues including cracks in the walls and foundation, broken roof shingles, mold, leaks, holes, etc. Their report includes information about the location, i.e. what kind of community, how far away from freeway, stores and schools. They also make note of the size, condition and existence of garage, deck, porches and fireplaces. Appraisers may also take note of secondary amenities like hardwood floors, crown molding, sprinkler systems, specialty countertops, swimming pools, etc. These extra amenities don’t have a significant impact on value, but can still increase value slightly.
Once an appraiser has all the information about the house, he or she will calculate value one of two ways. The most common method is the Sales Comparison Approach. An appraiser looks at houses , called comps, that were recently sold and are similar to the house being appraised. Most appraisers will look at a minimum of 3 comps, which were sold within the past 6 months and are located within 1 mile of the house being appraised. Of course there are situations where this is not possible, and then exceptions are made, but generally speaking that is the criteria appraisers use to find comps. An appraiser determines a home’s value based on the price that the comps sold for.
The second approach is the Cost Approach. In this approach, the appraiser determines the cost for rebuilding the entire house and that cost is the appraised value of the home. The appraiser will consult with industry publications and construction companies to determine the cost of building the house in the current market. Then they subtract the value lost with age, add the value of the land the house sits on, and they end with the appraised value.
Once an appraisal is complete, the homeowner, seller and/or buyer have a right to see it. Make sure you ask for a copy and go over to make sure all the information is correct. This should especially be done if the appraisal comes in significantly lower than you think the house is worth. If you have more questions about appraisals, feel free to call Team Rosental at 619-254-2445
photo taken from freedigitalphotos.net.
This Week in San Diego: 5 Fun Events for the Kiddos
Pirate Days at the Maritime Museum of San Diego
May 19-20
Bring the kids to this fun filled event all about Pirates! There will be actors dressed as pirates interacting with kids all day, costume contest, treasure hunt, canon demonstrations, sword fights, scary stories and maritime dancers. Admission to the event includes admission to the museum.
The Unseen Wound: Armed Services Day Fun in the Sun
May 19 3-8pm
Liberty Station
The Unseen Wound is an organization dedicated to equipping combat veterans with the professional, psychological, and interpersonal skills to successfully acclimate and function in civilian life. This Saturday they are having a fundraiser with music, celebs, civic leaders, veterans (young and old), stand up comics who happen to be veterans, awesome food and world class local beer. Bring your beach chairs, appetites, wallets of course, and learn how we are going to support our young combat veterans as they reintegrate into civilian life. Register online and save $5 on food and beer tickets.
Wild West Fest
May 19 11apm-2pm
Leo Carrillo Ranch Historic Park
This free event celebrates Native American culture. There will be pony rides, a salsa tasting contest, and an Adventure Activity card taking you through Native American themed activities and projects.
Best and Brightest: A Showcase of San Diego’s Young Musicians
May 20 at 2:00pm
Copely Symphony Hall
Music lovers of all ages will enjoy this free concert featuring the Civic Youth Orchestra, San Diego Youth Symphony and Young Artists Symphony. Tickets are free but you must email the concert hall to reserve your spot rsvp@sandiegosymphony.org. Put “best and brightest” in the subject line, as well as your full name, address and the number of tickets you want (limit 4).
Wacky Science Sundays
May 20 12:15-2:15pm
San Diego Natural History Museum
Head over the the Natural History Museum for Wacky Science Sundays with Ms. Frizzle™ and The Magic School Bus©. These live performances take place every Sunday. Get ready to explore the wild and wacky worlds of mysterious creatures, fascinating habitats, and phenomenal hands-on science!
2012 San Diego Family Kite Festival benefitting Rady Children’s Hospital
2012 San Diego Family Kite Festival benefitting Rady Children’s Hospital
2nd Annual San Diego Family Kite Festival
Bring a picnic lunch and enjoy a beautiful afternoon with the family.There will be Kite making, decorating, and flying. There will also be people on hand teaching you and the kids how to properly fly a kite.
ALL of the donations and proceeds from the event go to benefit Rady Children’s Hospital here in San Diego. read more
San Diego Real Estate: Tight Supply = Higher Home Prices!
There are fewer homes in the market in San Diego. After several years of pleanty inventory, now apparentely there are more buyers than homes to sell.We are seeing multiple offers in each home that comes out in the market . Interest rates are still very low. Consumer confidence is growing and the job market is improving.
The median price per square foot for San Diego resale homes was close enough to be flat, as single family median resale price went up and condo slight down a bit.
The following graphs can explain how the market is moving:
Closed sales were also pretty close to flat, which is unusual for February, which usually sees a drop:
And pending sales rose to a level higher than in any recent Februaries past:
Inventory is the real story, as less number of houses come into the market
Active inventory is tighter as the “contingent” inventory grows (that means the property is being sold as a short sale and there is already a buyer waiting for bank approval)
Real ”active” inventory — is actually down 33 percent from a year ago.
The number of months’ worth of (total) inventory dropped to 3.8 months. This is very low compared to recent years:
Months of inventory is an important statistic, because it tells us how fast a listing will sell in the open market of offer and demand.
It’s clear that there has been a good correlation between months of inventory and home price changes.
Inventory levels, as measured by the ratio between current supply and demand, say nothing about the longer-term prospects for housing, nor about exogenous factors that could come into play and change that ratio (the possibility of higher mortgage interest rates ). But the level of inventory can provide clues about price pressures in the months ahead. Should the rather dramatic tightness in supply persist, the near-term pressure for home prices could be to the upside.
Celebrate! The Jewish Experience in Spanish Speaking Countries
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Award-winning jazz guitarist-composer-producerJaime Valle has performed worldwide with various artists, including Sammy Davis Jr. and Poncho Sanchez. Special guest Jazz and Latin singer Coral MacFarland will perform in Ladino, the Spanish-Jewish dialect spoken by Sephardic Jews.
Whether he’s playing straight-ahead jazz, Latin jazz, or wild jazz-rock with Santana overtones, guitarist Jaime Valle is a mainstay of our music scene!” – SAN DIEGO MAGAZINE This concert is for ages 21 and over. Thursday, May 17, 2012 – 7:30 p.m.
Venue: 98 Bottles 2400 Kettner Blvd. #110, San Diego 92101 Tickets: $20.00 (includes admission to the Concert and a $5 drink ticket) |
Everything You Need to Know About Appraisals: The Basics
What is an appraisal?
A home appraisal is an objective determination of what your house is worth. In California, every homeowner receives an annual issued by their county assessor’s offices for property tax purposes. When a home is for sale, the potential buyer’s lender sends an appraiser to the property to determine its value. Depending on the market, or recent upgrades to your home, this appraisal may be different from the one you received at the beginning of the year from your county assessor.
A house’s worth is determined by three things: the size of the house, details of the house and current market conditions for the neighborhood in which the house is located. It’s pretty obvious how size affects the value of a house; the bigger the house, the more money it’s worth. Certain upgrades and additions can also increase the value of a house. Pools, hardwood floors, upgraded appliances, and solar panels are just some of the upgrades that can increase a homes value. Current market trends in the home’s neighborhood also effect value. If there are several homes in foreclosure, they will drive down the value of your home, even if yours isn’t a foreclosure.
How does an appraisal affect buyers and sellers?
Imagine you have found your dream home in San Diego. You and the seller agreed on a $400,000 price tag, you have a $40,000 down payment and and you have been approved for a $360,000 mortgage. But then your lender sends out an appraiser who states the house is only worth $350,000. Suddenly, the deal the falls apart and you’re back to square one.
Lenders will not give mortgages for more than what the home is valued. It presents a huge risk to them if the buyer defaults on the loan or has to sell before the house reaches the value at which it was bought. In the above scenario, it doesn’t matter that you personally were approved for a mortgage on a $400,000. What matters is that the home is not worth $400,000, so the lender will not finance it.
What do we do if the appraisal comes in lower than the asking price?
There are several different options available to buyers and sellers if the appraisal comes in lower than the asking price. The sellers can choose to reduce the price to match the appraisal and a new amendmet to the purchasing contract will be signed by buyer and seller. Or the seller can choose to wait to sell until the home’s value increases. If the seller will not reduce the price, but the buyer really wants the home, the buyer can increase his or her down payment by the amount that the appraisal came short. In the example we discussed earlier, the buyer would have to increase his down payment by $50,000.
These are the basics of home appraisals. Come back next week for more information on how appraisers determine your home’s worth. If you have questions about appraisals, feel free to ask them in the comments below or contact: Team Rosental at 619-254-2445.
Photo taken from Danilo Rizzuti/ FreeDigitalPhotos.net
This Week in San Diego: Mother’s Day Brunches
Say “thank you” to your mom for all the dinners she cooked for you and lunches she packed by taking her out to a wonderful Mother’s Day Brunch. Mother’s Day is this Sunday, May 13th, so book your reservations today! If you have any restaurant suggestions feel free to share them in the comments below.
Baleen San Diego
858-490-6363
Baleen is located inside Paradise Point, San Diego’s Island Resort. The seafood restaurant is offering an A La Carte menu and Bloody Mary bar from 10:00 am to 3:00pm. Enjoy delicious seafood while looking over Mission Bay.
Argyle Steakhouse
7447 Batiquitos Dr.
Carlsbad, CA
760-603-6908
Brunch is served at the Argyle from 10:30 am-2:30 pm and includes soups, salads, omelets, pancakes, eggs, burgers, sandwiches, French Toast, and many more delicious items. Outdoor dining gives exquisite views of the golf course and the wetlands of Batiquitos Lagoon.
Crab Catcher
1298 Prospect St.
La Jolla, CA
858-454-9587
Brunch is served from 10:30 am-3:00pm. Entree options include Halibut, Salmon, steak, prawns, chicken, crab, and waffles. All entrees are served with complimentary Champagne.
Cafe Sevilla
353 Fifth Ave
San Diego, CA
Open 10:30 – 2pm on 5/13 for a Buffet Brunch featuring their live Flamenco Guitarist & Spanish Specialties including a Carving Station, made to order Omelets, a Pasta Station, Crepe Station, Fresh Salads, and Traditional Breakfast Favorites. $34.95 includes one glass of Sangria and Champagne or $5 extra for Bottomless Sangria and Champagne!
The Melting Pot
901 5th Ave
San Diego, CA
619-234-5554
This famous fondue restaurant will feature Mother’s Day menu items not typically offered.
Should I Sell My San Diego House in 2012?
“Should I sell my house in 2012?” This is a question we get often from prospective and past clients. They hear reports that the economy is improving, but they still aren’t sure if selling is a good idea. The answer to this question is different for everyone. It’s not just economic factors that need to be analyzed, there are personal motivators as well. If you have questions about your specific property, please call Team Rosental at 619-254-2445 to discuss your options. Here are some general guidelines to help you decide if you should sell your San Diego home in 2012.
Economic Factors
For the past 5 years, many people have labeled the real estate market as a “buyer’s market.” So far in 2012, there have been several indicators that market is evening out and sellers are benefitting.
One big indicator is that unemployment has decreased. Common sense tells us that if people don’t have an income, they aren’t going to buy a house. But many people who haven’t had jobs over the past few years are now employed and are ready to buy a house.
Closely related to unemployment is consumer confidence, which has generally improved. According to The Conference Board, a research association that measures consumer confidence, “Overall, consumers are more upbeat about the state of the economy, but they remain cautiously optimistic.” What does this mean in real life? It means people aren’t rushing to make huge unnecessary purchases. However, they are brushing off a lot of the fear and insecurity that characterized American attitudes during the recession, and they are making reasonably purchases that they need. This includes housing.
Although its been a buyers market for some time, many buyers had a hard time getting mortgages because lenders have very strict guidelines regarding who could be approved and who couldn’t. A third indicator that this is a good time to sell is the fact that lenders are starting to loosen those guidelines, which means more people are able to get mortgages. That means there are more buyers looking for homes, which means yours has a good chance of selling.
A fourth indicator that it’s a good time to sell is the amount of demand. If demand is high and supply is low, you’ll not only have a good chance of selling your home but selling it at a good price. We’ve seen a huge increase in demand since January. We had 4 Urban Work Live Lofts sit vacant during 2011, yet all four of them sold in the first four months of 2012. People are ready to buy, so you need to be ready to sell.
Personal Motivators
For many people, the decision to sell their San Diego home has nothing to do with the economy and everything to do with what is happening in their personal lives. A new job in a different location, the need for a bigger house, the desire to live in a different neighborhood, the desire to be closer to family…all of these things contribute to the decision to move.
If you’re life situation is making a move necessary, don’t let economic reports scare you out of selling. Instead, talk to a local San Diego real estate agent like Fanny and Ruben Rosental. They can tell you about the best ways to stage and price your home in order to attract buyers and maximize profit. They are familiar with the local real estate market and can best advise you on the best time to sell. Call them at 619-254-2445 or email fanny@teamrosental.com
THE CLOSING: Regardless of the economic indicators, the best time to sell is when the time is right for you.
5 Things You Should Do in San Diego This Week
Celebrate Cinco de Mayo in Old Town San Diego! This three day event has incredible live music, food and fun! Buy an array of merchandise including handmade leather pieces and beautiful jewelry. Fill your stomach with food from over 20 restaurants, ice cold beer and tequila. Explore the museum, ride the stagecoach or visit the specialty stores. There is also a kids area and stage, so bring the whole family out to Old Town San Diego from Friday May 4th to Sunday May 6th.
Fiesta de los Penasquitos. This Sunday from 11-5 head out to a fun festival in Rancho Penasquitos. The Festival showcases local musicians, artists, businesses, schools, and service organizations. There are plenty of booths to shop for merchandise or get a tasty lunch. The event also offers a Skateland Alley and a Kids Zone with carnival rides and activities.
Fill your fridge with delicious fresh produce from the Pacific Beach Farmer’s Market. Enjoy an array of groceries and goodies. Featured items include fresh fruits, vegetables, flowers, bakery, prepared foods, dry goods, and specialty items; plus craft creations by local artisans. The market is open every Tuesday from 2-6:30 pm.
The San Diego Natural History Museum has an amazing Titanic exhibit going on right now. Step back in time as you experience life as a Titanic passenger. See actual artifacts recovered from the ship, listen to audio readings of letters and diaries and view photographs from that fateful trip. History comes to life in this traveling exhibit that is only in San Diego for a limited time.
Need a new job? Go to the San Diego Job Fair on Monday May 7th. Attendance is free. Network with local business owners who are looking to hire reliable and talented employees just like you!
The Real Meaning of “Cinco de Mayo”
What does Cinco de Mayo mean?. On a linguistic level, if you don’t have Internet access (you do), or an analog Spanish-English dictionary handy, the phrase “Cinco de Mayo” simply means the “fifth of May” in Spanish.
For many, the day represents nothing more than another excuse to party.
I think the larger population sees it as a festive day like St. Patrick’s Day and an occasion to go to happy hour. Many people just see it as an opportunity to have two tacos and a beer.
Cinco de Mayo, contrary to popular belief, is not Mexico’s Independence Day. That occurs on Sept. 16., or el dieciseis de septiembre, si hablas español. The holiday, in actuality, marks a major victory for the Mexican Army on May 5, 1862, when 4,000 Mexican troops defeated 8,000 French troops at the Battle of Puebla.
The French had decided to attack Mexico after it stopped making interest payments toward a major debt, but a devastating military defeat forever changed the fate of France in the Americas.
The holiday has since spread from its roots in the Southwest and in Southern California, becoming more popular throughout the U.S.
Mexico’s real Independence Day causes more celebration south of the border, while liquor companies and Mexican restaurants have promoted Cinco de Mayo stateside.
Mexican Americans often see the day as a source of pride. One way they can honor their ethnicity is to celebrate this day, even when most don’t know why. But the meaning has morphed over time. To others,this holiday is kind of viewed as a joke because they feel it’s their culture that is being appropriated and exploited, and not all are happy with the change.
So when you’re gobbling down your next taco or opening another beer this weekend — Cinco de Mayo falls on a Saturday this year — perhaps take a moment and reflect on what it is you’re actually toasting to.
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