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How to Avoid Appraisal Problems in the Sale of Your Home

by: Jeanette Joy Fisher

Before you sign a contract to sell your home, check to see if the purchase offer depends on financing. Look for a clause witch states that the offer is contingent on your home's appraisal done by the buyer's mortgage lender. This clause causes many home sellers to lose the sale or to lower the sales price later.

Appraisers draw on comparable market sales (comps) of local properties sold within the last six months to value your home. With today�s rapidly rising seller�s market, six-month-old information is ancient history. Appraised value does not always equal the true market value, or what the home will sell for on the open market.

Realtors will give you a comparative market analysis, an informal estimate of market value based on comparable sales. Lenders, on the other hand, will use the appraised value to determine a new mortgage amount. Some lenders require that the stated property value covers the mortgage amount plus their selling costs in case of foreclosure. For this reason, a sale may fall through if a home sells on the open market for more than the appraised value, which often happens in bidding wars over hot property.

We learned the importance of securing a sufficiently high appraisal when we sold a rental property in Lake Elsinore, California. We listed the house for $234,700 on Friday. By Monday morning, we had three offers: $245,000, $255,000, and $260,000. We accepted the one for $255,000 because the buyers had $80,000 down, reassuring us that they had sufficient funds.

As usual, the lender sent an appraiser to review the property. This busy appraiser didn't take the time to view all the upgrades we put into the custom-built home. Even worse, he used only comps from the local one-mile radius. Because this home is close to a shopping district, there were not many homes sold in this limited area during the six-month period.

The appraiser used comps six months old; during this time housing costs in Southern California appreciated around thirty percent. Sales from six months previous should have gone up in value by $30,000 on a $200,000 home. This means that our home should have been worth $250,000 to $260,000, especially since buyers are willing to pay this price on the open market. To increase the value of this home, at the time there was not another three bedroom home listed in the area for under $250,000 (excluding manufactured homes). However, the appraiser valued our home for only $230,000 -- and we would have lost the sale if the offer did not include a sufficient down payment.

Because a low appraisal can kill your sale, finding a buyer with a large down payment provides you with a safety net. You may also choose a buyer with strong credit who doesn't have to put a large percentage down. If you think that your home�s appraisal could become a problem, make sure you don't include a clause in your sale�s contract which states "subject to appraisal."

How to Avoid Low Appraisals

Hire your own appraiser before the sale. Then ask your buyer�s or lender�s appraiser to review your appraisal.

Retain the option to approve your buyer�s mortgage lender. Make sure that the buyer doesn't use a lender with a history of deliberately underestimating property values. A good real estate agent should know which lenders routinely under value homes.

Keep records of repairs and upgrades, including costs. Take "before" and "after" photographs. Create an organized journal with a listing of expenses and include pictures to show to the appraiser during the appraisal appointment. Stage your home for the appraiser like you do for buyers.

Secure your own property comparables to make sure the appraiser uses complete information. Call real estate agents with homes in escrow and get the sales prices. Make a list of these properties with the agent�s phone numbers and give it to the appraiser.

What to Do When Your Selling Appraisal Comes in Too Low:

1. Ask for another appraisal.

2. Protest the appraisal with documentation of your upgraded expenses.

3. Have the buyers make a larger down payment.

When you sell or buy real estate, remember that the certified appraisal is just one person�s opinion of the value of your home. The opinion that counts for you is the buyer�s: you want to be sure the buyer values your home above all others.

About the author:

Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST, Staging Houses, Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits, and other real estate and interior design books, teaches Design Psychology and real estate investing. For information on Design Psychology, visit: For help selling houses, articles, and home staging tips, see

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Things You Should Know About Gardening
by: Gerardas Norkus

Gardens come in different varieties like the plants you find in them. There are several gardening tips that can be used for all type of gardens.

1.Mulching protects your garden topsoil from being blown away. It also provides nutrients as it decomposes and improves the appearance of your gardens. Mulching has other benefits and is one of the most recommended gardening tips by gardeners and farmers alike.

2.Healthy plants are more disease resistant. Plant are like people, a person with a strong immune system can combat diseases. A healthy plant does the same.

3. Pests can be eradicated by cleaning the plant with a watery solution of soap. Just make sure to rinse after. This gardening tip is best heeded for fruit bearing trees or edible plants.

4. Using compost fertilizers are a great way to have healthy plants. It is also a great way to save money on expensive fertilizers. Non -organic fertilizers also tend to leave chemical residues that can accumulate in garden soils and harm not only the plants but the gardeners as well. They cause toxins to go to the water supplies. Another gardening tip recommended not just by farmers and gardeners but also by environmentalists.

5. There are several plants that are only suitable for a specified climate, a certain kind of soil or can only grow with certain plants. You have to know what plant grow in the conditions you have in your area this is for you to avoid unnecessary purchases. This is a money saving gardening tip.

6.Landscaping is a good investment which can double the value of your home. This is one gardening tip that can earn you money.

7. Growing grass on bare ground is an easy way to make your home look better and appreciate in value. This is one gardening tip that promotes earning money while growing grass legally.

8. Aside from looking great in your home, trees also provide some sort of protection from direct sunlight exposure and strong winds.

9. Vines on the walls, fences and overhead structures also would offer some protection and would also look great.

10.Flowers are beautiful, but they are also expensive. Get one that is resistant to many elements. Flowers from your local community already have developed resistance to conditions present in your area.

11.For most gardens plants, their roots go only as deep as 6 inches. Putting fertilizer deeper than that would be a waste of money. Put them shallower as they seep down when the plants are being watered.

12.Earthworms are important to plants. They till and aerate the soil for the roots to breathe. Non-organic fertilizers can kill them. This gardening tip dates back to the old days of gardening.

13. Having several kinds of insects that are beneficial to your garden would be good. These insects can be encouraged to stay by having diverse plants in your garden.

14. Spot spraying weeds with household vinegar, instead of using commercial weed-killers, can eradicate them. This is another environment friendly gardening tip.

15. Avoid putting too much mulch on tree trunks, this would encourage unwanted pests to reside on them.

16. Use plant varieties that are common to your area or have been taken from an area with similar conditions.

17. Be sure to know the plants that are poisonous. If you are intent on growing them, make sure to have the necessary cure available in your household. Take note of this gardening tip, it can save your life.

18. The best time to water plants is during mornings.

19. Before planting a new plant in your garden, you must consider its height and size when it matures. This garden tip can help you save money in the future.

20. Newly transplanted plants may require special attention during its first week. This is to reduce the stress and shock it got during transplantation.

And last but not the least of the gardening tips...

21.Plants are living entities. If you want them to grow in your garden you have to treat them as such. They need to be taken care of. They are like your pets, you look out for them. In return you get that feeling of contentment watching them thrive.

A good way to take care of them is to consider that plants might have some feelings too.

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