After the buyer and seller come to a "meeting of the minds" on the price of a house, there is one more person who must be convinced that the house is worth the selling price--the mortgage company's appraiser.

The appraiser looks for three similar houses that have sold in the same area within the last six or so months, and compares the selling prices of these homes with the one you are buying. They make adjustments to account for the differences in each property, and the price for your house will be the average of the adjusted prices of the other three homes. In subdivisions or condominium projects where there are many similar properties and plenty of recent sales, the appraiser's job is fairly easy. In neighborhoods of older homes that have been renovated or remodeled over the years, it can be like comparing apples and oranges.

If the appraiser's evaluation is lower than the selling price, it can threaten the transaction if the lender declines the buyer's loan based on the appraisal. In that case, a knowledgeable Realtor can sometimes work with the appraiser to make the transaction work.

When your house begins feeling too small or outmoded, you have two options--to remodel or move to a new home. Many homeowners who do extensive remodeling often sell their homes within a few years of completing the work. The decisions you make about your renovation could have a significant impact on whether you can recover your investment when you sell your home. Realtors see a lot of houses and listen to a lot of buyers. Along with architects and professional kitchen planners, they can provide valuable advice on how to change a kitchen or bath, or add a room that will add to your family's enjoyment and attract future buyers. Before you decide to take the remodeling plunge, you should consider whether expensive improvements will over-improve your home. If you are inclined to make an investment in your home in the West and North Columbus area that far exceeds the selling price of other homes in the area, it may be better to sell your present home and buy one that corresponds to your needs.

When you meet with a lender to apply for financing, you may feel as if you are in a foreign country as the loan officer talks points, Regulation Z margins, PMI, and ARMs.You are not alone if you feel left behind by loan terminology. Like many professionals, lenders use a highly specialized language. Don't hesitate to ask for a translation! This is especially true if you are investigating some of the more complicated loans with rates that can be adjusted periodically. As you consider the various loan options, find out what the interest rate will be and at what point the lender will commit to that rate. If the loan has an adjustable rate, be sure that you understand how often and by how much your payments can go up or down. Find out if the loan can be assumed by a future buyer. The lender isn't trying to confuse you. The mortgage process is complicated, so just keep asking questions until you understand.

I'm Jeff Johnson and I'm ready to serve your real estate needs.

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