This is one of a series of consumer protection ads.
Do you know if you qualify? IRS 1099c Debt Forgiveness.If you qualify, you are not responsible for any delinquency resulting from short sale, e.g.: If you have a $250,000 mortgage and the home sells for $100,000: YOU OWE NOTHING! If you do not qualify, $150,000 is added to your income.
Use an Experienced Broker. If you do it wrong, you may owe the IRS tens of thousands of dollars in income tax.
BPO: PURPOSE AND INTENT of a BPO(Brokers Price Opinion) is to determine the best and highest use and resulting highest marketing value of specific real estate. In doing so, all pertinent information affecting the subject property value shall be provided to the property owner, so as to allow the property owner to make an informed decision when setting a value. To assist this effort, a Broker may recommend a value based on a comprehensive review of current (and/or projected) market conditions.
Town Property Assesment: Property values are often compared to a Town Property Assessment value. It should be noted that the Town sets value to equalize property value within the community for the purpose of assessing taxes fairly. Said assessments may be based on a specific period of time in a market. Thereafter, it may take up to two years to fully assess all property in a community, ipso facto; "assessed value" is often obsolete upon its completion. In consideration of that fact, State statute allows the Town to be up to 33% off actual market value for the purpose of determing "ASSESSED VALUE". This variation is then adjusted using an "Equalization Factor" over a period of not more than ten years without re-assessing values. The applicable point of this information is to inform the seller that assessed values may not represent current market conditions.
APPRAISED VALUE : A State Licensed Appraiser will typically be hired to determine a property value by an owner or lender. An appraiser will often take into consideration the purpose of the appraisal; i.e., for purpose of a pending sale at a pre-determined value. In the case of a sale, the appraiser will typically determine (for a lender) if the selling price can be "supported" in the current market.
In fact, property value is determined as a result of holding a property out for sale in the open market, whereby the desired result is an "arms length transaction" at an agreed upon price. In some cases the asking price is reduced from the original list price by large margins. In other cases the asking price is upheld or bettered.
COMPARABLE DATA: In all of the aforementioned property evaluation efforts, comparable data is used. Today, the buyer often also uses comparable data via a buyer broker. Comparable data is simply a compilation of recent like kind sales that may closely reflect the value of a similar property an owner wishes to sell. From said market information the seller may make an informed decision. It should be noted that experienced application of market conditions often determines whether the seller receives the highest return in the least time. For instance, it was observed that some properties were on the market for more than a year and in many cases were substantially reduced in price in order to provoke a sale. This suggests over pricing. Ideally priced property will spend several months to yield a value close to that asked.
WHEREFORE, until such a time that a ready, willing, able buyer makes a bonifide offer and that offer is accepted by a would-be seller, any opinion of value by a professional is hypothesis.
Cinderblock Foundations: Block foundations should be generally light gray in color. Darker varied grays and white rings or spots indicate a serious problem.
The following are observations from a recent showing: The area is predominately wet throughout the season, i.e., a seasonally high water table. The blocks were not sealed correctly, or at all. The constant moisture draws the lime out of the concrete (seen as white stain or crystals on the block) and weakens the structural integrity. Some blocks crumbled upon my touching them with my hand.
Concrete Foundations: IRC(International Residential Code) specifies soils type to set footings and foundations on. Soils must always be compacted. While concrete foundations sometimes crack, someone with experience must assess those cracks to be sure they are non-structural.
The following are oservations from recent showings: The area is predomiinately wet throughout the season, i.e., a seasonally high water table. The predominately clay soils were not replaced with gravel. The footing sank. The foundation followed. In one case foundation walls were removed and replaced upon correcting the soil and compaction. In another case, the cracks were simply cemented over. The problems still exist.
Asphalt Shingles: Shingles are rated by the years of expected life, e.g., 15 yr., 20 yr., 35yr.. The 15 and 20 year in particular will begin to fail in the area of 5 years prior to this target date. An experienced eye can detect this. The ventilation, or lack there of, will also affect the life of the shingle.
The following are observations from recent showings: The shingles may begin to crack. Some may break off. Dark vertical streaks are observed (harder to observe on black shingles). This looks like chimney smoke stains. It s actually the protective composite wearing off the tarpaper base. If the shingles are disclosed as only 8 or 10 years old, ask how may years they are rated for.
Septic Systems: Septic systems should be flow tested by a State of NH Certified Inspector. A failed system is very hard to spot without an inspection. If you discover a 300 gal. tank, the system is obsolete.
The following are observations from a recent showing: The system was disclosed as having a 500 gal. tank (this means it is an old system). The status of the leach field was unknown. The buyer flushed the toilet; it worked. I flushed the toilet; it worked. However, I observed a gurgling noise. I inspected the plumbing for defects, correct ventilation & correct pitch. No problem was noted. The noise, therefore, indicates a poorly drained basil area; i.e., a failed leach field.
Forced Hot Air Furnace: Many certified inspectors are not able to do an "invasive inspection". This means the heat exchanger is going to be physically inspected for defects along with a mechanical inspection to detect emissions. Emissions will make you ill and may cause death. A certified technician from an oil company should do this if your inspector can't.
The following are observations from a showing: The home was warm, very warm. The first thought is "the heat works good". Despite the already high temperature, I turned the thermostat up so the furnace would run. I immediately smelled emissions. The system was failed and very dangerous.
Drilled Wells: Wells should be tested to determine minerals, bacteria and toxin.
The following are observations from a water test: Bacteria was discovered (not uncommon). The well was chlorinated and flushed. Bacteria was still present upon testing (human error is assumed). The well was re-chlorinated and flushed. Upon re-testing bacteria was still detected. The most probable causes is ground water infiltration and may be caused by one of the following: 1. Cracked or buried well head (remedy-replace head or raise above ground). 2. Cracked well line, usually detected beause of air infiltration (remedy-replace line). 3. Cracked well casing( remedy-replace well). 4. Improper casing seal to ledge (remedy-replace well).
Craig Lancey, Broker, has decades of experience in structural rehabilitation and construction of new homes. Be sure you get an experienced, trained home inspector before you buy any property. If you have a Broker with such background, major defects may be spotted during showings. This could save you from spending money for multiple home inspections, or worse, buying the defect.
OUR DOOR IS ALWAYS OPEN!