Fair Appraisal

Fair Appraisal A broker's job includes managing the appraisal process What's the biggest challenge homebuyers and sellers face in getting to the closing table today? It isn't agreeing on price. Nor is it the availability of mortgage financing. Believe it or not, the biggest challenge today is the appraisal. @properties Market Minute: Chicago-area home prices are finally on the rise. Click on the video to watch our report. An appraisal is an opinion of value based on a home's attributes, as well as comparable properties known as "comps." When a buyer purchases a home subject to a mortgage, the lender orders an appraisal to determine if the real estate is adequate collateral for the underlying loan. During the housing boom, when prices could go nowhere but up, appraisals usually confirmed the price on the front of the contract. But when prices started falling, banks and appraisers began taking a much more cautious view of values. Some argue the pendulum has swung too far in the other direction. Today, overly conservative appraisals are a big reason sales fall through or get delayed. Of course, an appraiser's job is to protect a lender from making risky loans, not to justify the sales price for a buyer or seller. Still, appraisals (and appraisers) are subjective. And that is why it's imperative for brokers to proactively manage the appraisal process. Here are some things a good broker will do to help make sure your home is properly valued in an appraisal: • Be present at the appraisal - Meeting the appraiser in person allows the broker to discuss specifics regarding the subject property, comps and the overall marketplace - and to gain a better understanding of the appraiser's perspective. • Make sure the appraiser understands the location - New guidelines have resulted in more appraisals being handled by third-party appraisal management companies. Sometimes these companies assign appraisers from outside the subject property's area. A good broker will make sure the appraiser understands the nuances of the specific location. • Use recent comps - Appraisers used to include comps from as far back as 12 months in their analyses. Today, they require closed sales from within the past three to six months. Good brokers will make sure the comps they share with an appraiser are recent sales. • Be realistic - Presenting comps that differ greatly from the subject property is counterproductive to a successful appraisal. A good broker will start out with comps that are in the same ballpark and then make the case for why they should be considered with the subject property. • Act as a resource, not a salesperson - Appraisers have a tough job today, as similar properties may have different values depending on the situation. A good agent will avail themselves to the appraiser as a resource, not a salesperson trying to wrangle a favorable valuation. For smart, proactive guidance on your real estate needs, contact me. I consider it a privilege to work with you or someone you know. This email was sent to registered subscribers of @properties || 618 W Fulton Chicago, Illinois 60661 Opt out: Please click here if you do not wish to receive future newsletters from @properties.

Arizona - Guaranteed Rate, Inc - 14811 N. Kierland Blvd., Ste. 100, Scottsdale, AZ, 85254 Mortgage Banker License # BK-0907078 • California - Licensed by the Department of Corporations under California Residential Mortgage Lending Act • Georgia Residential Mortgage Licensee #20973 - 3940 N Ravenswood Ave, Chicago, IL 60613 • Idaho - Guaranteed Rate, Inc Illinois Residential Mortgage Licensee - Illinois Department of Financial and Professional Regulation, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, (312) 793-3000 3940 N Ravenswood Ave, Chicago, IL 60613 MB.0005932 • Kansas Licensed Mortgage Company - Guaranteed Rate, Inc - License # 2005-4928 • Massachusetts - Guaranteed Rate, Inc - Mortgage Lender & Mortgage Broker License MC 4994, MC 4995, MC 4996 • New Hampshire - Guaranteed Rate, Inc. dba Guaranteed Rate of Delaware • New York - Licensed Mortgage Banker - NYS Banking Department • Pennsylvania - Licensed by the Pennsylvania Banking Department • Virginia - Licensed by the Virginia State Corporation Commission, License # MLB-1219

Today's Rates 7/20/12

Viewing from a mobile device? Click here for a plain text version Today's Rates for Guaranteed Rate As of 07/20/2012 Program Rate APR Conforming Loans - loan amounts up to $417,000 (single unit properties) 30 Yr Fixed Conforming 3.500% 3.526% 15 Yr Fixed Conforming 3.000% 3.046% 5 Yr ARM Conforming 2.625% 3.105% 5 I/O ARM Conforming 3.000% 3.243% Jumbo Loans - loan amounts over $417,000 (single unit properties) 30 Yr Fixed Jumbo 4.375% 4.393% 5 Yr ARM Jumbo 3.125% 3.269% 7 Yr ARM Jumbo 3.500% 3.421% · 3% Down Programs for Condos in Illinois · VA Loans at 0% Down · FHA Loans at 3.5% Down · 3% Down Programs for Single Family Home *Assumptions: Conforming Loan Amount $400K /LTV 75%; Purchase; Primary residence; Existing Single Family Home; State of Illinois; Escrow; 25 Day Lock; 15 days Pre-Paid Interest. Standard Lending fee of $1275.00 - Title fees are not included. No points for home purchases or refinancing; applies only to fully documented Conforming and Jumbo 15 year and 30 year fixed rate first mortgages up to a maximum loan amount of $650,000. Jumbo Loan Amount $600K /LTV 75%; Purchase; Primary residence; Existing Single Family Home; State of Illinois; Escrow; 25 Day Lock; 15 days Pre-Paid Interest. Standard Lending fee of $1275.00 - Title fees are not included. No points for home purchases or refinancing; applies only to fully documented Conforming and Jumbo 15 year and 30 year fixed rate first mortgages up to a maximum loan amount of $650,000 All interest rates are as of July 20, 2012 and are subject to change due to market conditions. Please call for current rates. Guaranteed Rate is the Preferred Lender of @properties Call your VPs of Mortgage Lending: Joe Caltabiano SVP – 773.290.0335 – joe@guaranteedrate.com Drew Boland – 773.290.0583 – drew@guaranteedrate.com Mike Nielsen – 773.435.7920 – mike.nielsen@guaranteedrate.com AZ - Guaranteed Rate, Inc. - 14811 N. Kierland Blvd., Ste. 100, Scottsdale, AZ, 85254 Mortgage Banker License # BK-0907078 • CA - Licensed by the Department of Corporations under California Residential Mortgage Lending Act Lic #413-0699 • CO - Lic #989256 • CT - Lic #17196 & 17199 • DE - Lic #201425 • DC - Lic #MLB 5453 • FL - Lic #ML 0700402 • GA - Residential Mortgage Licensee #20973 - 3940 N. Ravenswood Ave., Chicago, IL 60613 • ID - Guaranteed Rate, Inc. Lic #MBL-5827 • IL - Residential Mortgage Licensee - Office of Banks and Real Estate, Mortgage Banking Division, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, (312) 793-3000 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 • IN - Lic #11060 & #10332 • IA - Lic #MBK-2005-0132 • KS - Licensed Mortgage Company - Guaranteed Rate, Inc. – License #2005-4928 • KY - Mortgage Company Lic #MC20335 • LA - Lic #RML2866 • ME - Lic #SLM1302 • MD - Lic #13181 • MA - Guaranteed Rate, Inc. - Mortgage Lender & Mortgage Broker License MC 4994 • MI - Lic #FR-0016637 & SR-0011899 • MN - Lic #MO 20526478 • MS - Lic #ML/004453/2010 • MO - Lic #91744 • NE - Lic #1811 • NV - Lic #3162 & 3161 • NH - Guaranteed Rate, Inc. dba Guaranteed Rate of Delaware, licensed by the New Hampshire Banking Department - Lic # 13931-MB • NM - Lic #1995 B500887 • NY - Licensed Mortgage Banker - NYS Banking Department - 3940 N Ravenswood, Chicago, IL 60613 Lic #LMBC No 106624 • NC - Lic #L-109803 • ND - Lic #MB101818 • OH - Lic #SM.501367.000 • OK - Lic #2007247 • OR - Lic #ML-3836 • PA - Licensed by the Pennsylvania Banking Department Lic #19559.001 • TN - Lic #2958 • TX - Lic #50426 • UT - Lic #7495184-MLC0 • VT - Lic #LL6100 & MB930 • VA - Licensed by Virginia State Corporation Commission, License # MC-3769 • WA - Lic #520-CL-48821 • WI - Lic #27394 • NMLS (Nationwide Mortgage Licensing System) ID 2611

Chicago Neighborhood Market Report

Dave Straub (312) 254-0200 :: Contact me :: View my profile Office Locations: River North Lincoln Park Lakeview Gold Coast Bucktown Evanston Highland Park Winnetka Lake Forest