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        <title>Santa Cruz Real Estate News &amp; Information</title>
        <link>https://www.mysantacruzrealestate.com/blog/2010-02/</link>
        <description>Lifestyle, community, day trips, restaurants, real estate, home improvements, and more. Discover what makes Santa Cruz County such a great place to live. Presented by My Santa Cruz Real Estate.</description>
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    <guid>https://www.mysantacruzrealestate.com/blog/buying-santa-cruz-real-estate-money-mortgages-and-closing-costs.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/buying-santa-cruz-real-estate-money-mortgages-and-closing-costs.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Buying Santa Cruz Real Estate: Money, Mortgages and Closing Costs</title>
    <description> <![CDATA[ 
Because buying Santa Cruz real estate is one of the most important and expensive purchases you’ll ever make, it's worth the time to consider ways you can save money.  Here are a few ideas on how to save money on your mortgage and closing costs:

Pay Attention

You have to pay attention to how much the Santa Cruz real estate costs. You have to pay attention to how much the house is worth and how much more you may have to put in the kitty for any repairs that may need to be done. Use these details to negotiate.

Negotiate with the Seller

Negotiating with the seller is expected.  You already know you can negotiate on the price of the home, but did you know you can also negotiate who pays the closing costs?  In this buyer's market, it has become common to ask the seller to pay some or all of the closing costs when you purchase a home. Be careful with your negotiations.  Many sellers will up the price of the home, if you ask for them to pay closing costs.

Negotiate with your Lender

Negotiating with your lender has become the new norm.  In fact, depending on the lender’s Good Faith Estimate and your credit standing, negotiating for a better deal on your mortgage could save you thousands in the long run.

Examine the Good Faith Estimate

A Good Faith Estimate is the estimated settlement costs, or closing costs, your lender will expect you to pay. These can add up to as little as 3 and as much as 5 of the sales price. However, as the name implies, it is only an estimate, and prices are subject to change.

Carefully read your Good Faith Estimate. While some closing costs are usual, such as title insurance, others can be dropped by opting out of a service. Still others are “junk fees,” which you can negotiate for. 

When buying Santa Cruz real estate, you always want the best deal you can get. The same should be said when picking a mortgage lender. Pay attention to the good faith estimate.  In fact, get one from several lenders and compare them. Don’t let the excitement of buying a home override your good business sense.

Consider Rolling Closing Costs into your LoanMany new homeowners roll their closing costs into the loan. However, if there’s a way to pay them at closing, it might be better to do so. Paying them now saves you money because spreading them throughout the life of the loan means shelling out more interest.

If you’re looking for a great deal on an even better home, let me negotiate for you. Call me at 831.662.6522 or email me at Lauren@LaurenSpecer.com for more information.

Links:

Negotiations with the seller

Good Faith Estimate

Picking a lender
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    <pubDate>Sun, 28 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/faqs-on-tax-credits-for-buying-homes-for-sale-in-santa-cruz.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/faqs-on-tax-credits-for-buying-homes-for-sale-in-santa-cruz.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>FAQs on Tax Credits for Buying Homes for Sale in Santa Cruz</title>
    <description> <![CDATA[ 
Thousands of potential buyers of homes for sale in Santa Cruz are now homeowners, thanks to the first-time homebuyer tax credit. You could be eligible for a tax credit if you bought a home in 2009 or plan to buy one before April, 2010.  But which one are you eligible for? 

If you have two or three hours to spend reading the information about the homebuyer tax credit, you'll be able to figure out if you're eligible.  But, most people don’t have the time or patience. To shorten your learning curve, here are a few tips, pointers and frequently asked (and answered) questions about the tax credit:

Three Kinds of Homebuyer Tax Credits There are actually three kinds of tax credits:

1. The original first-time homebuyer tax credit, enacted in 2008, covers the homes for sale in Santa Cruz that went off the market between April 9, 2008 and June 30, 2009. Rather than being a true credit, the money received is actually a 15-year, interest-free loan. In other words, it has to be paid back.

2. The second tax credit, raised from a maximum of $7,500 to $8,000, doesn’t have to be paid back. If you bought a home between January 1, 2009 and November 30, 2009, you may be eligible.

3. The third homebuyer tax credit, enacted in November 2009, is actually an expansion and extension of the second credit. It extends the deadline of November 30, 2009 to April 30, 2010 and expands the credit to include long-term homeowners who want to buy a new residence.

Tax Credit QualificationsJust because you buy a home between April 9, 2008, and April 30, 2010, doesn’t mean you automatically qualify. Each homebuyer tax credit has its own eligibility requirements. For instance, the home has to cost less than $800,000, if bought after November 6, 2009. Long-term owners have to have lived in the same home for five consecutive years of the past eight. There are also income requirements, as well as other factors. 

Automatic IneligibilityTo receive the homebuyer tax credit, there are a few things you absolutely cannot do. For example, the home you buy has to be a principle residence, which means it's the one you live in most of the time. You can’t buy it for business. As well, the home you buy has to be in the U.S. 

Another “can’t do” is selling the home or converting it to rental property. You have to live in the home as your permanent residence for at least three years. If you don’t, Uncle Sam will want the money back.

There are many great homes for sale in Santa Cruz, and one of them might just be your dream home. However, if you plan to purchase and claim the homebuyer tax credit, make sure you know the facts first.

Have questions about the homebuyer tax credits?  I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Original first-time homebuyer tax credit

Third homebuyer tax credit

Each homebuyer tax credit has its own eligibility requirements
 ]]> </description>
    <pubDate>Fri, 26 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/a-sellers-market.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/a-sellers-market.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>A Seller's Market?</title>
    <description> <![CDATA[ 
A Seller’s Market? Hard to believe, but many homes drawing multiple offers again as listing shortages continue

My how things have changed in just one year A year ago at this time, many homes were languishing on the market as buyers stayed on the sidelines, worrying about their jobs, the sharp decline in their 401k accounts, and whether housing prices would ever rise again. Today, many of those buyers have swallowed their fears and are out in force once again, spurred by an improving economy, a solid recovery in the financial markets, and federal home buyer tax credits that will expire this spring.

While no one claims the housing market is out of the woods yet, an unusual dynamic is occurring in many communities around the Bay Area:  Despite the choppy housing market, there is an army of confident, well-qualified buyers out searching for homes, but many sellers are now sitting on the sidelines One listing in San Francisco’s Outer Mission neighborhood priced in the mid-$500,000 drew more than 100 groups during a two hour open house during the past holiday weekend.

Inventory shortages continue to be the challenge in many areas.  In Santa Clara County and the East Bay, for example, the number of homes for sale is standing at half of what it was a year ago This has resulted in as many as half of the listings on the market attracting multiple offers as buyers fight it out for the best properties.

This conundrum has resulted in prices rising even as sales are falling.  DataQuick, the La Jolla-based research firm, reported that the median sale price of homes and condos in the Bay Area shot up almost 17 percent year over year in January while sales dipped 4 percent. The biggest jump in the median price was 18.3 percent in San Mateo, but all counties (except Napa) saw strong increases.  (see chart below) The upper end of the market is particularly sensitive to this trend, as illustrated by Santa Clara County, which saw sales of million-dollar homes half of what they were a year ago even as prices rose 4 percent, according to Coldwell Banker Residential Brokerage’s luxury market report.

Santa Cruz County: There are many multiple offers on homes under $700,000 and REO properties and short sales. REOs and short sales continue to have a very strong influence in sales, pricing, and overall market activity.  There seems to be a lot of anxious buyers waiting on the sidelines for the right property to appear.  Buyers seem to acknowledge with some positive economic news that it is an optimum time to purchase – maybe the most optimal time ever.  Inventory still continues to be an issue, although as we move toward spring and warmer weather we are seeing more homes coming on the market.

If you’re looking for a great deal on an even better home, let me negotiate for you. Call me at 831.662.6522 or email me at Lauren@LaurenSpecer.com for more information.
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    <pubDate>Thu, 25 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/want-an-8000-tax-credit-buy-a-santa-cruz-home-for-sale-now.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/want-an-8000-tax-credit-buy-a-santa-cruz-home-for-sale-now.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Want an $8000 Tax Credit?  Buy a Santa Cruz Home for Sale Now</title>
    <description> <![CDATA[ 
Last November, when Congress approved an extension on the first-time homebuyer tax credit, potential homebuyers who missed the original deadline were excited. It was another chance to buy a Santa Cruz home for sale and receive an often badly needed $8,000 on their tax return.

Real estate agents were excited as well, because the tax credit extension expanded to include “upgrade” buyers – those who wanted to replace their current home with a bigger one. The possibility of selling a home was higher than it’d been in a while. However, expansion to include upgrade buyers wasn’t the only change. 

If you’re hoping to buy a Santa Cruz home for sale and take advantage of the tax credit before the new 2010 deadlines, here are a few things to keep in mind:

• Two dates are crucial.  You must sign a contract before April 30.  The closings must be complete by June 30. One of the best ways to make sure things go smoothly is to get pre-approved for a mortgage before you go home shopping. Pre-approval tells you, as well as the seller, exactly how much home you can afford. This way, you don’t waste your time or the seller’s.

• Negotiate without emotion. Potential buyers have lost the home of their dreams because they became competitive. If you’re negotiating for closing costs, housing price or anything else, make sure that your requests are reasonable. Don’t change something “just because.”

• Taxes must be mailed in.  Due to people trying to scam the system, you won’t be able to file your taxes electronically; you’ll have to mail them in. Make sure you’re using the right forms, and, if you need your tax refund by a specific time, you might want to file early.

• Documentation is truly priceless.  Again, thanks to scammers, buyers will have to include a signed mortgage statement, proof of residency and a driver’s license with their taxes.

You still have until April 30 to sign a contract on a Santa Cruz home for sale to get the tax credit. Today’s real estate market is beneficial for buyers.  Put it to work for you

If you’d like to take advantage of the homebuyer tax credit, I can help. Call me right away at 831.662.6522 or email me at Lauren@LaurenSpencer.com so we can beat the deadlines.

Links:

Approved an extension on the first-time buyer tax credit

Get pre-approved for a mortgage

Negotiating for closing costs

 
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    <pubDate>Wed, 24 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/fha-changes-the-rules-for-buying-a-santa-cruz-home-for-sale.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/fha-changes-the-rules-for-buying-a-santa-cruz-home-for-sale.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>FHA Changes the Rules for Buying a Santa Cruz Home for Sale</title>
    <description> <![CDATA[ 
The FHA, or Federal Housing Administration, has helped many a homeowner buy a Santa Cruz home for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.

Before we talk about FHA's change in policy, let's cover a few of the basics about the FHA and how it might help you buy a home for sale.

What is the FHA?The FHA is a government agency that provides mortgage insurance to approved lending institutions.  It assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults.  This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.

What is an FHA Loan?An FHA loan is a loan provided by an FHA-approved lender and insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.

An FHA loan might help you get a mortgage by providing:• Lower down payments• Lower closing costs• Easier credit qualifications

Now let's talk about the changes FHA is making…

The Future of FHA LoansUntil recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential homebuyers flocking to take advantage of FHA loans. However, even FHA's bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their homes, the FHA is changing the rules.

Before the changes, borrowers were required to pay a down payment of 3.5 of the cost of the home. Now, borrowers with a credit rating below 580 will be required to pay at least a 10 down payment. As well, the good upfront mortgage insurance premiums of 1.75 are increasing to 2.25. The FHA is now trying to get Congress' approval to raise the annual premiums from 0.55, although the amount it will seek is still unknown.

What This Means for YouIf you’re interested in buying a Santa Cruz home for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, home values lower than they’ve been for eight years, the first-time and upgrade homebuyer tax credits and a wide selection of homes, there may never be a better time to buy.

Whether you want to use an FHA loan or a traditional loan, I can help you cash in on this great buyer's market. Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.

Links:

FHA-approved lender

Homebuyers flocking to take advantage of FHA loans

First-time and upgrade homebuyer tax credits

 
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    <pubDate>Mon, 22 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/how-live-in-stagers-can-save-your-santa-cruz-home-for-sale.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/how-live-in-stagers-can-save-your-santa-cruz-home-for-sale.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>How Live-In Stagers Can Save Your Santa Cruz Home For Sale</title>
    <description> <![CDATA[ 
If you have a Santa Cruz home for sale and it’s sitting vacant, it's a perfect target for vandals. The signs are obvious, such as uncut grass and lights that never come on. In fact, a vacant house doesn’t just look vacant; it feels vacant. 

Vandals aren’t the only problem for a vacant home for sale, however. The other problem is that a vacant home usually sells for less and sits longer than a well maintained, occupied home. So what’s the solution?

Well, if you live close by, you can visit the home, cut the grass, turn the lights on and keep it maintained. However, if this is more trouble than you’d rather go through, there’s another option – a live-in home stager.

You’ve probably heard or read a slew of information about home staging. If you haven’t, home staging is the practice of making a house look its best and has been proven to bring consistently higher prices for homes. Home stagers are trained to stage a house in the most attractive way to entice buyers.

Benefits of Using a Live-In StagerA live-in home stager is slightly different from a traditional home stager, but provides several benefits to homeowners wishing to sell their empty houses:

• No vacancy, no vandals – An empty home brings vandals. However, people are much less likely to vandalize a home that is well maintained and occupied. A live-in stager, as the name implies, stays in the home until it’s sold.

• Home staging and maintenance – One of the worst turn-offs for a potential homebuyer is to walk up a lane surrounded by tall, uncut grass into an empty, cold home. A live-in stager brings their own furniture to turn that empty home into a visually-appealing, warm living space. They cut the grass and keep the home looking beautiful until it’s sold.

• Residual income – Best of all, you aren’t paying them; they’re paying you. Now, obviously they won’t be paying full rent. In general, live-in stagers pay 25 – 40 of the normal rental rate. However, a vacant home isn’t doing anything but sitting there until it’s sold.

If you’ve been trying to sell a vacant Santa Cruz home for sale, and it’s still on the market, try a live-in stager. It may be the best decision you make this year

If you’re trying to sell your home, I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Live-in home stager

Information about home staging

Worst turn-offs for a potential homebuyer
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    <pubDate>Sat, 20 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/high-santa-cruz-foreclosures-equals-great-deals.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/high-santa-cruz-foreclosures-equals-great-deals.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>High Santa Cruz Foreclosures Equals Great Deals</title>
    <description> <![CDATA[ 
The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Santa Cruz foreclosures. Why?

The Law of Supply and DemandQuick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down. 

This is what’s happening now, especially with Santa Cruz foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:

• Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.

• Foreclosed properties are generally in better condition that they used to be.  In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosed homes have been lovingly taken care of by their previous owners.

• Potential buyers of foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.

Most foreclosed homes aren’t money pits. To protect yourself, make sure your real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.

If you’re looking for a great home at a great price, I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Extension of the homebuyer’s tax credit

Supply of homes

Home has been inspected

 
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    <pubDate>Thu, 18 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/emotional-aspects-of-selling-your-santa-cruz-home.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/emotional-aspects-of-selling-your-santa-cruz-home.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Emotional Aspects of Selling Your Santa Cruz Home</title>
    <description> <![CDATA[ 
Selling your Santa Cruz home is more than just setting a sale price and placing a sign in your front yard. It is an emotional process that can be stressful and frustrating. Here’s what you can expect to face:

• Putting your home on the market. You may have a difficult time deciding to put your house on the market even if you are being forced to move because of work or family situations. Your home holds memories that can be difficult to leave behind. You may even second guess your decision. This is a normal reaction.

• Showing your home to potential buyers. As buyers walk through your home, you may begin experiencing a new set of emotions. Your home will usually be cleared of excessive family mementos and seem lifeless to you. Keeping your home clean for a showing can also take away precious time and increase your stress load.

• Negotiating an offer. You obviously want to make as much profit as possible. As you review buyers’ offers, you may wonder if you are asking too much or too little. You may feel insulted by a too low offer. Even after signing a contract, there is still fear that the deal may fall through.

• Closing on your home. Walking away from the closing table, even with a check in hand, can be stressful. At this point you have probably already moved out of your home and now must face the process of settling in a new place and learning a new area. Once again, this is a normal part of selling a home.

Let me guide you through the process of selling your Santa Cruz home with minimal stress.  Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.

Links:

Showing Your Home 

Keeping your home clean 

Closing on your home
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    <pubDate>Tue, 16 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/buying-santa-cruz-real-estate-and-the-good-faith-estimate.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/buying-santa-cruz-real-estate-and-the-good-faith-estimate.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Buying Santa Cruz Real Estate and the Good Faith Estimate</title>
    <description> <![CDATA[ 
If you’re buying Santa Cruz real estate and talking to lenders, you’ll hear about the Good Faith Estimate. Because the Good Faith Estimate is required by law and lists all the costs associated with a mortgage, including closing fees with estimated pricing, it's a good place to start when searching for a lender.

Best practice for buying Santa Cruz real estate is to shop for lenders first. While you’re looking, ask for a Good Faith Estimate and then compare them. This will be your first indication about which lender is best for you. 

Not All Estimates are Created EqualMany closing fees for buying real estate are considered typical and have an average price range, such as:

• Title search and title insurance: $450 - $600• Appraisal: $150 - $400

Because real estate closing practices vary depending on where you live, your location helps to determine what those closing costs will be. However, you might also find some extra padding on your closing fees, which some in the mortgage and real estate industries call “junk fees.&quot;

Most Good Faith Estimates (GFEs) have a breakdown of individual charges, but some may just be a lump sum amount such as: “Total of lender’s fees $1,395.” As long as the fees add up correctly to the estimated amount, there’s no problem. However, watch out for and question general wording like “miscellaneous fees,” “packaging fees” or “marketing fees.”

You have the right to request an explanation for any fee listed on the GFE. Although most GFEs have an explanation after each listing, some may not. If a fee seems odd to you, ask about it.

It's Only an EstimateOne final tip:  The GFE is only an estimate, not the exact amount you'll be paying.  At least one day before closing, get your final tally of the closing costs from your lender.  Compare this to your Good Faith Estimate to make sure no additional fees were added.  If you see inconsistencies, talk with your lender immediately to resolve these issues.  

Need help finding a lender?  I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Shop for lenders first

Your location helps to determine what those closing costs will be

Good Faith Estimates

 
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    <pubDate>Sun, 14 Feb 2010 23:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/buyers-guide-to-your-santa-cruz-homes-appraisal-terms.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/buyers-guide-to-your-santa-cruz-homes-appraisal-terms.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Buyer’s Guide to Your Santa Cruz Home’s Appraisal Terms</title>
    <description> <![CDATA[ 
If you're getting a mortgage on a home, your lender will require an appraisal. This is performed by a licensed appraiser who evaluates your home and determines its value. Here is a guide to your Santa Cruz home’s appraisal terms.• Age: The actual age of your home is how long since your home has been built. The effective age is the adjusted age of your home based on improvements and repairs.

• Adjustments: Comparison Santa Cruz homes are usually not exact replicas of your home. The appraiser will make adjustments for things like premium views or swimming pools to bring the home values closer together.

• Appraisal: This is the estimated value of your home based on the appraiser’s documentation.

• Comparison approach: A type of appraisal in which your home is compared with others in your area. Most appraisers use this approach because the market determines what your home will sell for.

• Cost approach:  A type of appraisal in which your home is valued based on how much it would cost to replace it if it was destroyed. This is typically used on newer constructions.

• Depreciation: Depreciation is a loss in value due to age or condition.

• Easements: Your electric company or local government may have an easement, or right to use your land.

• Encroachments: When you or your neighbors have items like fences resting on each other’s property, it is called encroachment.

• Market value: This is the highest price you could expect to get for your home under normal circumstances.

• Remaining economic life: This is the time from the appraisal when improvements become useless or valueless.

• Subject property: Your property is called the subject property.

Let me help you through the process of buying your next Santa Cruz home. Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Find an appraiser

Types of easements

Home improvement calculator
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    <pubDate>Fri, 12 Feb 2010 23:01:00 -0800</pubDate>
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