Dympna Fay-Hart
Serving Chicago Area Sellers & Buyers

(773) 230-3800

Send me a message

Feed aggregator

Winter ‘Bomb Cyclone’ Puts Homes At Risk

NAR Daily News Magazine - January 4, 2018 - 12:00am

The explosive storm spiraling across the eastern U.S. is expected to bring heavy snowfall and high winds. Southern houses may be most at risk...

Categories: Real Estate

Renting Population Drops as Prices Bump Up

NAR Daily News Magazine - January 4, 2018 - 12:00am

For the first time since 2004, there has been a decrease in renters.

Categories: Real Estate

The Best Places for New Year’s Resolutions

NAR Daily News Magazine - January 4, 2018 - 12:00am

Some cities may be more inspiring than others in keeping your goals on track for the new year.

Categories: Real Estate

Neighbors Waging ‘Not in My Backyard’ Battles

NAR Daily News Magazine - January 4, 2018 - 12:00am

Homeowners  increasingly want a say on development that occurs in their communities, even if it’s far beyond their...

Categories: Real Estate

Experts: 2018 Mortgage Rates to Surpass 4.5%

NAR Daily News Magazine - January 4, 2018 - 12:00am

The recent tax bill could be speeding up the Federal Reserve’s rate increases, which could push 30-year mortgage rates up past 4 percent in...

Categories: Real Estate

10 Cities That Offer Work-Life Balance

NAR Daily News Magazine - January 4, 2018 - 12:00am

Head to the Midwest if you’re looking for the best mix of work and play.

Categories: Real Estate

Making Sense of Valuation’s Alphabet Soup: CMAs, BPOs, AVMs and Appraisals

RisMedia - January 3, 2018 - 3:46pm

The following information is provided by the Center for REALTOR® Development (CRD).

This article explains the four most common valuation methods used for real property transactions and how and when they are used. It’s important to note that the methods below are not necessarily mutually exclusive. Lenders, servicers, investors, and other professionals use one or more of these valuation methods, depending on circumstances and the type of transaction. Often, one valuation method is used to confirm or quality-check the results of another.

Comparative Market Analysis (CMA): A CMA is prepared by a licensed real estate professional and is most commonly used to help determine a home’s listing price. The CMA should not be the only factor in determining listing price; rather, it is a guide for the agent and owner to evaluate the active and sold competition, and to serve as a tool in the price-setting process. A CMA can also be used—depending on variations in state laws—for a variety of other purposes, including loan modifications, short sales and foreclosure/REO purchases, value trend analysis, mediation and negotiation. It should not serve as the sole method of valuing collateral in a real estate transaction where a mortgage is being originated.

Broker Price Opinion (BPO): A BPO is prepared by a licensed real estate professional and is an estimate of the probable future selling price of a property. Like CMAs, BPOs may be used—depending on variations in state laws—for a variety of purposes, including loan modifications, short sales and foreclosure/REO purchases, value trend analysis, mediation and negotiation. They normally should not be used as the sole way to value collateral in a real estate transaction where a mortgage is being originated, even though in some states both BPOs and CMAs are technically permitted for purchase money transactions when the transaction is less than $250,000 (though allowed, CMAs are rarely used for this purpose).

Automated Valuation Model (AVM): An AVM is a service or software that provides property valuations, often based on mathematical modeling. AVMs are most commonly developed or used by lenders, servicer appraisal staff, and investors. While AVMs are most often used by lenders or secondary markets to confirm valuations provided in appraisal reports, they should not be used as the sole method to value collateral in a real estate transaction where a mortgage is being originated. They may, however, be used as the sole valuation option for other types of transactions, such as refinances.

Appraisal: An appraisal is prepared by a licensed or certified appraiser and is an opinion of a property’s value. Appraisals are most often used to value collateral in a real estate transaction and are required for most federally-regulated transactions above $250,000. Exceptions include transactions where no new money is involved. In practice, appraisals are used for the vast majority of purchase money transactions involving a loan. For the most part, lenders or servicers determine the use of appraisal or another acceptable methodology for transactions that are not purchase money.

Source: www.nar.realtor/appraisal/valuation-services-matrix

For more education about valuation and pricing, check out this month’s featured online certification course at the Center for REALTOR® Development, Pricing Strategies: Mastering the CMA, which is the educational requirement for NAR’s Pricing Strategy Advisor (PSA) certification, and is on sale this entire month of January at 25% off its regular price. This certification aims to help real estate professionals enhance skills in pricing properties, creating CMAs, working with appraisers, and guiding their clients through the anxieties and misperceptions related to real estate valuation.

For more information, please visit RISMedia’s online learning portal from NAR’s Center for REALTOR® Development (CRD) and the Learning Library. Here, real estate professionals can sign up for online professional development courses, industry designations, certifications, CE credits, Code of Ethics programs and more. NAR’s CRD also offers monthly specials and important education updates. New users will need to register for an account.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Making Sense of Valuation’s Alphabet Soup: CMAs, BPOs, AVMs and Appraisals appeared first on RISMedia.

Categories: Real Estate

Hone These Essential Business Skills in 2018

NAR Daily News Magazine - January 3, 2018 - 12:00am

Most successful business owners share these key abilities. Here are ten ways you can improve your performance in each area in the coming...

Categories: Real Estate

Climate Change Fears Make Elevations Count

NAR Daily News Magazine - January 2, 2018 - 12:00am

In coastal areas, some worry “climate gentrification” will mean neighborhoods on higher ground become unaffordable.

Categories: Real Estate

Why Is Everyone Moving to Idaho?

NAR Daily News Magazine - January 2, 2018 - 12:00am

The Gem State attracted more new residents in 2017 than any other in the country. Learn what other areas are seeing similar growth.

Categories: Real Estate

Use These Categories to Find Your Niche

NAR Daily News Magazine - January 2, 2018 - 12:00am

Carving out a specialty for your business takes a fair amount of thought and reflection, if you do it right. Here are three considerations....

Categories: Real Estate

Wealth Surge Boosts Second-Home Market

NAR Daily News Magazine - January 2, 2018 - 12:00am

Learn which popular vacation spots around the country are benefiting most from this trend. 

Categories: Real Estate

What Qualifies as ‘House Poor’?

NAR Daily News Magazine - January 2, 2018 - 12:00am

Just because your clients are approved for a mortgage of a certain amount doesn't mean it will work for their budgets. Make sure you and your...

Categories: Real Estate

Wet vs. Dry Bars: Outdated or On-Trend?

NAR Daily News Magazine - January 2, 2018 - 12:00am

Are these entertainment spaces still coveted by buyers? 

Categories: Real Estate

Retirees Face ‘Million-Dollar Poverty’ Risk

NAR Daily News Magazine - January 2, 2018 - 12:00am

A $1 million nest egg in retirement may no longer be enough. 

Categories: Real Estate

The Metros That Will Feel Tax Reform the Most

NAR Daily News Magazine - January 2, 2018 - 12:00am

Signed into law at the end of 2017, the new tax rules will impact those in high-cost areas the most.

Categories: Real Estate

2017’s Biggest Surprises for Homebuilders

NAR Daily News Magazine - January 2, 2018 - 12:00am

A new survey reveals the twists and turns for builders in 2017, and what the market expects in the coming year. 

Categories: Real Estate

5 Home Accents Interior Designers Loathe

NAR Daily News Magazine - January 2, 2018 - 12:00am

Don’t let these cringe-worthy decors ruin the style of a listing you’re staging. 

Categories: Real Estate

Owners Rush to Prepay Property Taxes Before Losing Benefits

NAR Daily News Magazine - December 28, 2017 - 12:00am

Homeowners in areas with high property taxes are scrambling to pay their 2018 tax bill ahead of time in an attempt to take advantage of deductions...

Categories: Real Estate

Black Accents Make Comeback in Home Design

NAR Daily News Magazine - December 28, 2017 - 12:00am

Black fixtures, appliances, and furniture are emerging as hot trends for the new year.

Categories: Real Estate