As everyone knows, the national real estate market has been crazy over the past 12-18 months. Because of the collapse of various national financial institutions and its effect on the economy and the real estate market, property values have taken a nose dive. An increase in foreclosure and short sale activity has also taken its toll on the value of most people’s greatest asset: their home. The Alabama real estate market, like all other areas of the country, has also been affected, with some areas being harder hit than others. I’m happy to say that our neighborhood of Weatherly is holding up better than a lot of other areas. With the exception of some minor foreclosure activity, the median sales prices of homes have held relatively steady over the past 12 months. When many other areas are reporting declines in value, this should be viewed as good news. Birmingham MLS data indicates that there are approximately 24 properties currently listed for sale in Weatherly (Alabaster section). Based on the rate of sales in the past 12 months, this reflects a slight over supply. However with the summer months upon us, and the usual increase in sales during this period, it is anticipated that inventory levels will level off and reach more typical levels.

In 2008 Money Magazine reported that the Birmingham market would be one of the nation’s first markets to rally. It anticipated that the median prices in our market would increase over the next 12 months. In addition it predicted that we would see a 2% rise in values by the end of 2009. With all this being said I encourage everybody to keep their chin up and look ahead to when the market will return to normal.

Mr. Horn recommends getting a market value appraisal before putting your home on the market to sell. All residents of Weatherly qualify for a 10% discount.

Mr. Horn is a resident of Weatherly. He provides real estate appraisal services in both Shelby and Jefferson county Alabama, where he concentrates on residential properties, which includes single family homes, 2-4 family homes, lake homes, condos, vacant land, and manufactured homes. You can learn more about him by visiting his website at www.Appraisal-source.com or calling him at (205) 243-9304.

I'm no expert on the proper technique for handling asbestos when making home renovations and improvements, however I do know of the harm it can cause to your health when it is done improperly and it enters into your body.  The presence of asbestos in homes and the associated cost for its containment and/or removal can have a significant impact on the properties market value.  I was recently contacted by Jesse Herman of the Mesothelioma Cancer Center about providing information to the real estate industry regarding this problem that does not appear to have gotten alot of recent press despite its known health concerns.  The following information is provided to help educate anybody involved in the renovation of older homes that may have asbestos in them.  I hope it provides helpful information.

The path to home ownership is a fast paced reality that is renowned to be one of the great American traditions. It is also one that will require additional responsibilities. In many instances, newly bought homes may need to be renovated or repaired. This can be a problem because older homes can still possess obsolete methods of construction that if disturbed, can release toxins into the air.

The state of Alabama is no stranger to asbestos problems. Many industries that utilized electricity, fire and corrosive materials had great use for asbestos. Potential home buyers in Alabama or those remodeling older homes should be aware that homes constructed prior to 1980 can still contain asbestos. Not only are there green alternatives to asbestos, but they can even save you money!

As a real estate worker or homeowner, you should be aware that exposure to asbestos is easily prevented by taking simple precautions. If any suspected asbestos is located, the best thing to do is leave it alone as disturbing it could cause its fibers to become airborne. The frequent inhalation of asbestos fibers can cause a rare, but severe form of asbestos lung cancer known as mesothelioma. Mesothelioma treatment varies and while there have been advancements, there is no known cure.

The amount of asbestos-related incidents in the last few decades has lead to asbestos lawyer firms advocating victim rights around the U.S. The negligence involved with the asbestos scandal has been one of greed and dishonesty. Manufacturers of asbestos were aware of its toxic qualities, but repressed this information from the public.

It is recommended for home owners or remodelers to hire professional inspectors who can determine the legitimacy of danger if any asbestos materials are present. The Alabama Asbestos Professionals can conduct home inspections, take samples of suspect material, assess its condition and advise about what corrections are needed. If removal is deemed necessary, it must be performed by a licensed abatement contractor who is licensed in dealing with hazardous materials. Once the removal is completed, homeowners must seek out eco-friendly options as insulation replacements.

With public initiatives and technology increasing, there are many alternatives to old building materials. These recycled building materials include the use of lcynene, cotton fiber and cellulose. Cotton fiber is made from recycled batted material and treated to be fireproof. Research suggests that the use of recycled building materials can reduce energy costs in the home up to 25 percent annually. Not only will these asbestos alternatives reduce energy costs, they allow a lifestyle that promotes a clean, free of health damaging materials.

Mr. Horn provides real estate appraisal services in the Birmingham, Alabama metro area where he concentrates on residential properties, which includes single family homes, 2-4 family homes, lake homes, condos, vacant land, and manufactured homes. You can learn more about him by visiting his website at www.Appraisal-source.com.

Here is a very interesting article I ran across on the New York Times website. 

http://www.nytimes.com/2009/03/22/realestate/22Mort.html?_r=1&ref=business

It asks the question, "Are appraisals done through an AMC less reliable than ones that are ordered directly from an appraiser".  The bottom line is the fee associated with the assignment.  It reminds us of the old saying: You get what you pay for.  Are there any others that agree with this.

It’s an unfortunate but true fact: property values are declining. With the number of foreclosure properties and short sales entering the market, property values have declined in most areas. In the past a foreclosure sale, or other similar sale where the price is lower than normal, would not have been given much consideration because it was not typical in the market. However, because of the sheer number of these types of transactions, as well as the number of properties being offered for sale (i.e.-competitive listings), they must be considered.

Prior to the decline, property values increased a great deal because of the real estate boom. This resulted in higher assessments and higher property taxes. What we have left now are the high taxes and low market value of residential real estate. One way of making this work for you is to get your county assessments lowered to more accurately reflect the property’s true value and likewise lower your property taxes. This process varies by county so it is recommended that you check with your county to find out their procedure.

The first step is to get an independent appraisal of your home so that you can see how it compares with what the county assessor has it valued at. It is important that the appraiser have the right credentials. This includes proper education, state certification, experience, and familiarity with the market area the property is located in.

After the appraisal is completed you will need to file the appeal with the county you are located in. Depending on how complicated this procedure is you may want to have a real estate attorney do this for you. In addition to the filing, they can argue your case to the county and prove to them that you house is indeed not worth as much as the say it is. You may also be asked to respond to questions the board may have. With a professional appraisal and a convincing argument it is possible your assessment and taxes will be lowered.

This may seem to be a daunting task at first but if you do your homework correctly, it could pay off by saving you thousands of dollars in property taxes.

Mr. Horn provides real estate appraisal services in the Birmingham, Alabama metro area where he concentrates on residential properties, which includes single family homes, 2-4 family homes, lake homes, condos, vacant land, and manufactured homes. You can learn more about him by visiting his website at www.Appraisal-source.com.

Lenders, attorneys, consumers; have you ever regretted hiring an appraiser after the fact? Did they tell you they met certain qualifications and later you found out they didn’t? Let’s face it; every profession has members that are more qualified than others. By being more knowledgeable about the qualifications of the appraiser you choose you can save yourself from a headache before it’s too late.

According to their website, the Appraisal Subcommittee (ASC) states the following:

“The ASC's mission is to ensure that real estate appraisers, who perform appraisals in real estate transactions that could expose the United States government to financial loss, are sufficiently trained and tested to assure competency and independent judgment according to uniform high professional standards and ethics”.

By logging onto the ASC website you can search to see if the appraiser you want to use is AQB compliant. According to the ASC website this means that “the appraiser met the Appraiser Qualifications Board’s Real Property Appraiser Qualifications criteria ("AQB criteria") on education, experience, and examination, when obtaining and/or maintaining the credential”. If the appraiser is not AQB compliant this could indicate two things: “A “no” in the column typically means the appraiser was not required to demonstrate the hours of experience set forth in the AQB criteria for the credential level. It, however, may also mean the appraiser failed to demonstrate the hours of education or continuing education set forth in AQB criteria”. This site can help identify those appraisers who have not provided proof.

The quality of work provided and/or integrity of the mortgage transaction can be increased when you know that the appraiser you want to use has demonstrated his competency by providing his credentials to the Appraiser Qualifications Board.

Appraisers can be retained for various reasons. They can provide appraisals for home purchases, refinances, construction loans, marketing (FSBO), PMI reduction, estate planning, and litigation. You can check to see if they have met the requirements set forth by the Appraiser Qualifications Board by clicking the following link.

http://www.asc.gov/content/category1/nr_intro.aspx?id=10

In addition, ask for references from past clients. You can only make informed decisions when you have all the facts.

Mr. Horn provides real estate appraisal services in the Birmingham, Alabama metro area where he concentrates on residential properties, which includes single family homes, 2-4 family homes, lake homes, condos, vacant land, and manufactured homes. You can learn more about him by visiting his website at www.Appraisal-source.com.

In recent months FHA financing has been on the increase. With the decline of the sub prime lending market, and related creative financing programs, many lenders have been offering FHA loans to many homeowners for refinancing and home purchases. Current FHA requirements are not as stringent as they once were. If you are interested in the exact requirements you can log on to the HUD website here. The purpose of this article is to provide some helpful tips to realtors when their listings sell with FHA financing. By making sure that the home is ready for the appraisal inspection the entire loan process can run smoother and no additional trips will be necessary to verify HUD requirements are met. I have included here five items that should be addressed.

1. Electricity must be on for the appraiser to verify operation of the HVAC system, appliances, and the electrical system.

2. Plumbing must be operational so the appraiser can look for leaks, flush toilets, and check water pressure.

3. Attic access must be provided to check for insulation, attic ventilation, and any damage.

4. Access must be provided to the crawlspace (when present) to check for standing water, possible damage, and ventilation.

5. Windows must be able to be opened. This is important for safety reasons as access to the outside is necessary. In addition, if security bars are present, they must have a quick release mechanism or if that is not present they must be removed.

This is by no means a complete and comprehensive lists but it includes items which I have ran into lately that have created delays in the closing process. If you have any questions regarding appraisal requirements for FHA financing please do not hesitate to call me at 205-620-6888.

Most people would like their mortgage payment to be as low as possible.  One way to do this is by cancelling your private mortgage insurance on your home loan, if you have it.  Private mortgage insurance makes it possible for home buyers to get into a home with very little money down, as little as 3% of the homes value.  This can make a big difference for a lot of buyers that are tight on funds.  The private mortgage insurance (PMI) does not have to be kept for the life of the loan.  In fact, it is only required until you have built up 20% equity into your home.  After this is achieved you can request that it be removed. Records indicate that approximately 90% of homeowners having PMI remove it within 60 months after getting their loan.

Removal of PMI is a rather straight forward process.  Here are the steps:

1. Try to determine if you have built the 20% equity into your home. This could have been achieved through appreciation of property values in the area, making larger that required mortgage payments each month (resulting in the mortgage being paid down), or through renovations or improvements that have increased the value of your home. If you answered yes to any of these scenarios you could be a good candidate.
2. Contact your loan servicer and provide them with your name, social security number, address, and loan number.
3. Ask them what their requirements are for PMI removal. They may need additional information including an appraisal to verify that their criteria have been met.
4. If they need an appraisal find out if they have to order it or if you can. If you are able to order it you can call around to screen the appraiser based on their cost, experience, and knowledge of the area.
5. Send a request in writing for PMI to be cancelled.
6. After the appraisal is finished the servicer will follow up with you about the status.

Most people may only think about refinancing their home to lower their payment but if you do a little homework you can achieve the same goal of lowering your payment without all the closing costs.

I live in Alabaster, Alabama. It’s a great city situated in Shelby County, just south of Birmingham in the northern part of the state. Today I want to spotlight the neighborhood I live in called Weatherly. Weatherly is a modern swim and tennis club development with over 600 home sites. In addition to the swim and tennis club it offers several lakes and a clubhouse. The subdivision offers numerous home styles and home sites, including garden homes, lakefront homes, mountain top homes and estate size lots. With a neighborhood this size it is easy to get lost in the crowd and feel overwhelmed by the number of neighbors you have. This can affect your sense of belonging to a community by making you feel isolated.

I’m sure everybody reading this has probably seen the old Andy Griffith series on T.V. We all enjoyed the antics of Opie and his friends playing cowboys and Indians, or Andy and Barney working on the latest case in Mayberry, and of course Aunt Bea trying to make the best batch of pickles for this years fair. Mayberry was a small town where everybody new one another. A community where everybody saw each other more often, did things together, and helped you out when you needed anything.

These days life is different. It’s faster paced, we’re on the road more, and we don’t get to see our neighbors and friends as much as we may want to. One thing the Weatherly neighborhood is doing to promote a closer knit community is to take advantage of the internet by creating an online presence. Because most everybody these days has a computer and an internet connection the website provides an online meeting place for residents of the neighborhood.

MyWeatherly.com was created by Iveta Thetford. She says that her motivation for creating the website was to have an online community for the neighborhood, where neighbors can find out about the other neighbors, their interests, services offered, and to meet new friends that live in the same community, but never see because of the different work schedules. The website brings together all of these aspects of what makes a small community appealing. It includes current news (both neighborhood and city), services offered by local residents, and articles written by people in the neighborhood. There is even a classified section for those wanting to buy, sell, or trade anything. In addition, anyone trying to sell their home can add information for potential buyers to view. Lastly, there is the forum section where residents can communicate with each other. By providing a website that brings together all of the facets of a community, the neighborhood can grow closer and everybody can get to know one another better. Myweatherly.com is relatively new but it is already starting to build a sense of community among the residents of Weatherly.

This article by no means covers everything the website has to offer. To find out more about the neighborhood, and become a part of the community, check it out at www.myweatherly.com.

Are you a homeowner in need of an appraisal? Are you a lender needing to choose an appraiser to do work for your company? If you are, I hope what I have to say can help you in your decision making.

All appraisers are not alike. Appraiser experience varies based on several factors, including but not limited to the following: years of experience, amount of education, geographic competence, and familiarity with type of property being appraised. Experience can start with a trainee and extend to the seasoned professional. Appraisers generally start at the trainee level where they work for a licensed “mentor”. They must work with someone to learn from experience while they complete a predetermined number of hours of education. The trainee must be supervised. Everybody starts somewhere, however if you have a specialized property you need appraised and you feel more comfortable with someone with more experience this is something you need to know. There is nothing wrong with asking about their experience level. Even if you are getting an appraisal through a bank and the bank assigns the appraiser to you, you may still want to get this information.

The level of education is generally tied to years of experience, with more experienced appraisers usually having more appraisal education. Some appraisers, because they belong to professional association, are required to have more continuing education that someone who just maintains a minimum state level license. Two appraisers, who have been in the profession for similar amounts of time, may have different levels of education as a result of their organizations different educational requirements. Again, you may feel more comfortable with someone with more classes under their belt.

Geographic competence means that the appraiser is familiar with and has experience in appraising properties in different locations. If the appraiser performs a lot of work in certain towns or areas of town they are going to be more familiar with the market trends in the area. In addition, appraisers utilize data sources (usually MLS and courthouse records) that may only cover certain locations. An example is myself; I have experience appraising properties in and around the Birmingham, Alabama metro area and my data sources cover these areas, so I feel comfortable in appraising anything within this general market area. If I were to get an appraisal assignment in Mobile, Alabama, along the gulf coast I would not be familiar with the market nor have the data sources to obtain sales data in that area. While I am licensed to appraise anything in the state of Alabama, I lack the geographic competence and data sources to do it effectively.

The last area you may want to check on is the appraiser’s familiarity with the property type you need appraised. Some appraisers may not have experience appraising duplexes, triplexes, or manufactured homes. If this is the case it may take them longer to complete and assignment.

While this is not a complete list of items to use to choose an appraiser it is a start, and it helps to convey to the potential users of appraisal services that all appraisers are not alike!

To be specific, what does a quality appraisal mean to you? I read something one time that pointed out that quality means different things to different people. I am a real estate appraiser by profession and take great pride in my work, which would consist of the appraisal report being clear, concise, accurate, and complete. I’ve seen some reports where people do as little as possible, maybe by hitting the F3 key (an inside appraiser joke referring to canned comments assigned to one of the function keys on your computer keyboard), give as little explanation as possible, slap a value on it and call it a day. Others spend hours on market research, including detailed neighborhood analysis, write complete narrative reports and end with a final value that the reader of the report can understand because the writer made everything understandable.

I’m sure there are many other report quality variations between these two extremes but my main point revolves around the question of whether all this means anything to the person ordering/reading/using the report. What if the report that received the least amount of time and effort came in right on the money (the contract sales price), or what if the report that was well written, complete, and supported came in low and “killed” the deal. Which report would you say was a quality report? Would it be the one that made the deal work out or would it be the one that revealed that the buyer may not have been getting a good deal (which could open a door for negotiation and possibly save the buyer thousands of dollars)? I would be interested in reading peoples thoughts in addition to seeing whether the definition of quality is different for an appraiser, realtor, or mortgage loan officer, etc.