Jeffrey Fagan, a seasoned REALTOR® and regional vice president at Watson Realty Corp., dives into the crucial role of appraisals in real estate. He reveals how sellers can maximize their home's appraisal value and discusses the advantages of pre-listing appraisals. The conversation also touches on strategies for buyers to make their offers more competitive in today’s market. Additionally, design expert Melissa Dittmann Tracey weighs in on kitchen trends, debating the popularity of black countertops versus traditional wood flooring.
Buyers should secure lender qualification letters and present appealing offers to strengthen their position in competitive real estate markets.
Understanding the appraisal process and considering pre-listing appraisals can significantly impact a seller's pricing strategy and marketing efforts.
Deep dives
Impact of Economic Factors on Housing Market Trends
Recent concerns over tariffs, mortgage rates, and the number of unsold homes have significantly affected the housing market, leading to a notable drop in housing starts. In particular, single-family housing starts fell by 8.4% in January, contributing to a builder sentiment index that is at its lowest in five months. The rising costs of materials due to tariffs are influencing builders' decisions, with many anticipating that these increased costs will ultimately impact housing prices. As home price growth stalls, worries persist that prices may turn negative if mortgage rates remain elevated, further dampening demand in the market.
Strategies for Writing Winning Offers
In competitive real estate markets, it is crucial for buyers to secure a lender qualification letter before making an offer, as this strengthens their position against other buyers. Agents recommend conducting a market analysis to determine an appropriate offer price, which should also consider key terms, contingencies, and the buyer's capabilities with closing costs. Buyers are often advised to keep their offers as appealing as possible by minimizing requests from sellers, thus reducing obstacles in the transaction process. A substantial earnest money deposit can also enhance an offer's attractiveness, signaling the buyer's commitment to the purchase.
Understanding the Appraisal Process
The appraisal process is a critical aspect of real estate transactions, ensuring that the property's value aligns with the purchase price for the lender's protection. When a property appraises below the contract price, it can lead to negotiations between the buyer and seller, where the seller may choose to lower the price or the buyer must decide to pay above the appraised value. Some sellers opt to obtain pre-listing appraisals to validate their asking prices, particularly for unique properties, which can help in the marketing process. While appraisal values can vary, they generally provide a trusted estimate of a property's worth, underpinning the financial aspects of buying and selling a home.
Curious about what makes a buyer's offer stand out or how a seller can choose the right one? Pat Corle, 2025 president of Dayton REALTORS®, shares expert strategies on crafting and evaluating offers for a successful home purchase. We also welcome Jeffrey Fagan, REALTOR® and regional vice president at Watson Realty Corp. in Jacksonville, Florida, who explains the appraisal process and why they are so important, what sellers can do to hit the highest appraisal price, and the benefits of pre-listing appraisals. Then, home design expert Melissa Dittmann Tracey joins the conversation to weigh in on whether black countertops or wood floors in your kitchen are still trending or if they’ve gone out of style. Finally, Lawrence Yun, chief economist at the National Association of REALTORS®, shares the latest trends from the Existing-Home Sales Report.
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