Good morning, Memphis! Good morning around the country on IHEART radio! You’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, Mortgage Professional with Evolve Bank and Trust. We want to talk with you about ANY real estate topic YOU want to discuss. Today’s general topic is “Estimating Your Home’s Worth & Mortgage Options Based On Value.” Our co-host today is an expert on determining home appraisal values. Tom King, 35- year veteran appraiser and certified Shelby County Real Estate Property Tax Appeal Expert with King and Vaughan Consulting. Glad to have you on the show, Tom.
(Jo) Tom, we’ve had some interesting moves in the market over the last couple of weeks. What is trending in your industry?>
(Jo) Mortgage rates were predicted to go up quite a bit with the Fed pulling back on the massive bond buying they were doing last year and the year before, but rates this week are at a one-year low. How did THAT happen? The draw back on amount of mortgage-backed security buying by the Fed has not drastically pushed mortgage rates up because the demand in the market dropped when the rates DID go up around March April and May. Rates yesterday ended around 30YR FIXED – 4.25% FHA/VA – 3.75% 15 YEAR FIXED – 3.375%
- 5 YEAR ARMS – 3.0-3.50% depending on the lender
If you’re trying to decide to lock in the mortgage rate on a home purchase loan or a refinance, IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
(Jo) This week I talked to several people involved in estate sales of family property. Before you start making plans for what to do with family real estate property, you need more than an educated guess on the real value of the real estate. If you are selling the property to a buyer who is getting a mortgage loan or bank loan to finance the purchase, the value that will be used to determine the loan amount is the value given by the appraiser for the bank doing the loan. Usually, if the appraisal value comes in lower than the contract sales price of the house, the buyer can walk away from the contract unless they want to pay in cash for the down payment to include the extra dollar amount between what the bank appraisal was and the contract price. The sellers have a chance to lower the price on the house down to meet the low appraisal value or then can terminate the agreement. Everyone has options.
If you are selling your home to a buyer getting a loan to buy it, if you had an appraisal done on your own, the bank cannot use your appraisal since it is not considered an “arms length” transaction. On the other hand, you may want an appraisal from your own appraiser anyway—just so you have a better idea what you think the house value is so you can finish our your plans for selling the property.
When customers call us to do a refinance on a home or rental property or second home, we first go to www.zillow.com and www.trulia.com to get their estimates. They are NOT always right, but where there’s smoke there’s fire and it can give you a starting estimate until a professional appraisal is done. There’s a new FREE app on the market that you can download on your phone called Home Snap. You can stand on the street and hold your phone toward the house like taking a picture. It will collect all the public data it can find on that house and give it to you like when it was built, what type of heating and air it has, square footage, etc and etc. There is another site you can go to called www.city-data.com that will give you all kinds of data about a city or area-like the average income by zip code, the weather, the school district, and other demographics. –very helpful.
(Jo) If you’re interested in refinancing a primary residence, 2nd home or rental property, please give me a call on the air right now at (901) 535 WREC or call my assistant Susan Belew and I off the air at 901 482 0354. We can do some preliminary research for you on approximate values. We can work up some scenarios for you to compare if you are interested in refinancing your house or purchasing one. You can also catch us on our blog www.MortgageLoansBlog.com
Tom, today’s topic is “Estimating Your Home’s Worth & Mortgage Options Based On Value.” What are some mistakes people make when they try to estimate the value of their homes? <Tom launches his part of topic>
2ND SEGMENT 9:18 AM It’s time for the Look Back Memphis Trivia Contest brought to you by notable Memphis historian Jimmy Ogle. Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn. For information about Jimmy Ogle and his schedule for the historic walking tours, go to jimmyogle.com. Our Look Back Memphis Trivia Contest SPONSOR is Marlene Foster of ADT Security Services—the number one security system. Give Marlene a call at 901 232-6277. She will take good care of you Marlene is giving away a $25 gift card to the first person who calls with the correct answer to our Trivia Contest. If you know the answer, call us on the air at (901) 535 WREC. (901) 535 9732.
Here’s our trivia question : Who am I? (go to hints)
Garner # 19 06/18/14
Sherwood Forest
Question: Red Acres
Hint: I was one of the first neighborhoods to be developed east of Highland Street in the1920s.
Hint: My names comes from a type of tree that was prominent in the area.
Hint: I am known for not having sidewalk, small lanes for roads and acorn-shaped street lights.
Last Hint: My developers donated 120 acres of land to the City for a public golf course!
Answer: Red Acres. Of course! Established in 1926 by developers Henry Brennan and Robert Jordan, Red Acres is bounded on the west by Highland Street, south by Poplar Avenue, east by Goodlett Street and north by Walnut Grove. Red Acres is 256 acres, with 250 homes and derives its name from the prominent stand of Redbud trees on the grounds at the time. The developers donated 120 acres of land that became Galloway Golf Course, and honored Robert Galloway, a leading citizen and former Chairman of the Memphis Park Commission.
Red Acres is a middle to upper income neighborhood, with Ranch and Minimal Traditional homes on its exterior and large Estate homes in the interior, which are of impressive architecture and high values – a source of pride for the neighborhood. Having no sidewalks nor much apparent sub-surface storm drains along the narrow lanes makes the streetscape slow and conducive for residents to walk, stroll and bike. The acorn streetlights and large stand of trees give the impression of an old country lane. Located east of Poplar Plaza Shopping Center and north of Second Presbyterian Church and University Of Memphis campus, street names are Lily, Rose, Red Bird, Poppy and North, East and South Galloway!
Last Week: Sherwood Forest. Sherwood Forest is bounded on the north by Park Avenue, east by Getwell, south by Rhodes Avenue and west by Highland, Radford & Prescott. Most of the dwellings are single family homes were built between 1940-1955, in minimal traditional, Colonial revival, Tudor revival or ranch-style architecture. The area was originally developed by William Chandler without sidewalks, curbs or underground drainage, but some sidewalks were added after the 1950 annexation. Major influences on the neighborhood were the development of the Kennedy General Hospital and the growth of the University of Memphis.
Named for the Royal Forest in Nottinghamshire,England, that is famous through its historical association with the legend of Robin Hood, so many of the street names have that theme: Robin Hood Lane, Maid Marion Lane, Friar Tuck Road, Little John Road, Nottingham Place and Allandale lane.
The mansion is always elaborately decorated every holiday, reflecting the holiday as it was during the Victorian era, and the unique gift shop features unusual treasures at very reasonable prices!
Jimmy Ogle gives free walking tours in Downtown Memphis during the Spring and Autumn.
Go to jimmyogle.com for the 2014 Spring season schedule and locations.
Shelby County Courthouse: Third Thursday each month at 12:00 noon
TUESDAY TOURS: Tuesdays from April 1 to June 10 at 11:45 a.m. for about four blocks from a different
street corner each week
QUESTIONS ANSWERED BY JO GARNER
- What are some of the most common issues that come up in mortgage underwriting concerning an appraisal?
Tom to ask how we handle a dilemma when the air conditioner gets stolen but the seller doesn’t want to put another unit in on a vacant home until the buyer owns the property. How do you handle a situation like that?
What type repairs can be escrowed and which cannot be
Comparable sales:
Flood zones
Septic and well
Zoning
- In todays highly regulated system, the lender can’t pick your own appraiser? How does this affect the loan process?
- Are appraisals viewed differently by underwriters if the property is a rental house vs a primary residence?
- Are you seeing people hold back on refinancing their homes because they don’t think their house will appraise for much?
QUESTIONS ANSWERED BY TOM KING:
- What factors affect the value on a home the most? The least?
- What is the difference between a tax appraisal and a mortgage appraisal?
3. What are some examples of varying criteria required by different lenders?
4. When do you use the Sales comparable approach, the cost approach and the income approach?
4TH SEGMENT: REAL ESTATE TIP OF THE WEEK: (Tom King or Jo shares a practical tip)
Jo’s announcements: Talk Shoppe offers free education and networking to anyone interested in real estate or in business. This Wednesday June 18th, 2014 9A-10A at the YMCA Corporate office 6373 Quail Hollow Rd 2nd floor Memphis, TN 38119 Talk Shoppe presents: The Mastermind Principle: based on the book Think And Grow Rich by Napoleon Hill.” For more information about Talk Shoppe, go to www.TalkShoppe.BIZ
- Talk Shoppe gives a big thank you to the YMCA of Memphis for providing a place to hold the free business events for the community. The YMCA has opened registration for the YMCA Corporate Games, giving businesses a chance to PLAY LIKE A KID AGAIN …and….get some great publicity while having fun. If you would like for your business or employer to participate, contact the Y at www.ycorporategames.org or call Shauna Bateman at 901 766-7677 x 116
- Catch today’s podcast and our other podcasts from the Real Estate Mortgage Shoppe at www.MortgageLoansBlog.com
Transition Music: “You Can’t Always Get What You Want” by the Rolling Stones; “How Much Is That Doggie In The Window” by Patty Page; “Takin’ It To The Streets” by the Doobie Brothers
Look Back Memphis Trivia Contest: “Memphis” by Johnny Rivers
ABOUT TOM KING:
Tom King, certified Shelby County property tax appeal expert with King & Vaughan Consulting, is also a 35-year veteran appraiser in the Memphis area. taxappealexpert@gmail.com and www.golowertax.com
Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.BIZ She was also the editor of Power Shoppe, a free weekly ezine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.MortgageLoansBlog.com .
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home purchase loan programs, answers and real estate, money-saving tips and more.