My Appraisal Came in Low, Now What?

Whether you are buying or selling a home, the appraisal matters. Even when the buyer and seller have agreed on a price, the deal could fall apart if the appraisal comes in low.

In a sellers’ market when there are plenty of qualified buyers, multiple offer situations can drive up the purchase price higher than the sale price of the comparable properties.
In a buyers’ market, there are more properties on the market and there are fewer buyers purchasing, so values will be soft or falling.

Either way, the appraisal can be cause for concern.

There are several other reasons that an appraisal can come in low.  There could be an abundance of foreclosure or short sales that would drive values down. The appraiser could be from outside the area and not have local market knowledge, or they could be inexperienced.  Or the seller could have overpriced the property in the first place.

So your appraisal came in low, well here is what you can do. First, don’t panic because there are options so that the deal will not fall through. The buyer can make up the difference in cash by adding to the down payment to reach the agreed upon purchase price. If you are the seller, you could have a pre-sale appraisal completed when you list the property for sale.

The seller could lower the sales price to meet the appraised value. The buyer or the seller could order and pay for a second appraisal. You could ask the listing agent or buyers agent to provide a list of comparable properties that do support the value, and ask the underwriter to re-evaluate the appraisal. There is always the chance that they will consider new or overlooked information.

The deal doesn’t have to fall apart, but some do. If you remember that most problems are correctable
and address the problems one at a time, you should be able to work through them and get the deal to closing. If you have any questions on appraisals, feel free to call me directly at 215-519-1399.

Thngs to do in Bucks County This Weekend

11th Annual Bucks County Quilt Show

Bucks County Visitor Center

3207 Street Road, Bensalem, PA 19020

9:00 AM to 5:00 PM

Free to Attend

More than 100 handcrafted quilts on display at the Bucks County Visitor Center in Bensalem (Bucks County, PA) The Bucks County Quilt Show at the Bucks County Visitor Center in Bensalem is celebrating its 11th anniversary this year with more quilts on display than ever before. Presented by Visit Bucks County and The Quilt Academy of Bensalem, this annual exhibit features over 100 quilts hanging from 25-foot-high beams and displayed throughout the Visitor Center's Main Gallery. The Quilt Academy of Bensalem, an organization which offers a variety of quilting classes, has donated nearly 100 pieces for this show.

Exhibit "To Save Our Fellow Citizens": Volunteer Firefighting, 1800-1875

Mercer Museum 84 South Pine Street Doylestown, PA For more than 100 years, firefighting was the responsibility of every neighborhood and citizen. The city’s fire companies fervently believed that fighting fire was a community responsibility, best performed by virtuous and heroic men. Paid fireman finally replaced volunteers in 1871, signaling a change in beliefs about public service. The Mercer Museum’s engaging exhibition will include more than 175 historical firefighting artifacts including tools, colorful parade regalia, apparel, artwork, photographs, fire engines and fire equipment, and other unique items from the Museum’s permanent collection. The all-ages exhibit will also feature hands-on activities for children. 2015 Sixth Annual New Hope Film Festival

Venues throughout New Hope New Hope, PA  Don't miss the 2015 Sixth Annual New Hope Film Festival that will take place from July 24th - August 2nd in New Hope, Pennsylvania. Get ready for an exciting line-up of 80 films from 16 countries, with something for everyone. The 2015 Program Guide includes the schedule, venues, a description for each film and other important information about the event. Tickets are available at www.newhopefilmfestival.com. See you at the Festival! Tower Tour For Families

Fonthill Museum East Court Street & Route 313  Doylestown, PA    Start times: 10:30 am & 1145 am Children and adults explore Henry Mercer’s castle from basement to tower and learn about Mercer’s creative ideas through stories and prints.  Children must be 6 or older and able to climb the steep stairs.   Reservations required, call 215-348-9461 or email fhmail@fonthillmuseum.org.

Defend your Title – 4 Common Title Problems

You have just closed on your new home. You have signed your name for what seems like hours.  With deed and keys in hand, you’re off to move in and get settled knowing that you are protected and safe in your new home. You may think that everything is just fine, but what if the sellers long lost Uncle John comes knocking on the door. He says he has a deed to the property or an unrecorded will granting him ownership rights.

This is why you purchased title insurance. There are many common title issues that could arise after the closing. These are 4 of the most common issues and how your title insurance will protect you.

·      Undiscovered encumbrances occur when a third party holds a claim to part of all of your property.  This could be an unrecorded lien because the seller has not paid a contractor for work done, a deed restriction or covenant that limits the type of shed you can build, or a license granted to a neighbor to store his fishing boat.

·      There could be an error in the public records. While we think we are perfect, we are human and we make mistakes. There could be a clerical or filing error that affects the deed. There could be a mistake made in the survey, or an easement that is missed or forgotten. 

·      You may own your home and the land around it, but there could be an unknown easement that would restrict or prohibit you from using the property any way you would like to. The utility company or another property owner might have the ability to enter or use the property, right where you would like to build that shed.

·      The property may be new to you, and if it is not brand new, then it could have had several owners. No everyone is a diligent accountant or bill payer. A lien for the debts of a previous seller could be placed on the property after you own it.  The debt may not be yours, but it will be your problem. This is a common problem with distressed properties.

Title issues can cause great financial hardship, and limit the way you can use your new property. Title claims can be very expensive and can even affect the value of your new home. With title insurance you can rest assured that you would not have to deal with these concerns on your own.

The good news is that in the large stack of papers you received at closing, there is an Owner’s title policy, which will cover any title issues that arise after closing. The title company will help defend and pay claims on your title, so you wont have to go it alone.  If you have any questions about title insurance, feel free to contact me directly at 215-519-1399.

Want to stay cool? Then get to the Pool!

Lower Makefield Township Community Pool
1050 Edgewood Road,  Yardley, PA 19067
215-493-3020   

 

The pool complex consists of: 4 heated pools, Olympic size 50 meter, 25 meter x 25 yard lap, intermediate pool, tot pool diving boards, dual 18 foot slides one speed, one flume, snack bar, rest/changing Rooms with showers. Membership required.

Oxford Valley Pool
445 Hood Boulevard,  Fairless Hills, PA 19030
215-949-2975   

Pool opens Weekends and holidays only, May 24-June 22 Noon-7 p.m. June 23-Sept. 1- Open daily Noon- 8:00 p.m. Closed after Labor Day (hrs. of operation may change due to staff availability). Water slide closes before pool and occasionally closes due to classes or programs. Pool closes during swim meets.

Brookside Swim and Tennis Club

499 Stony Hill Road in Yardley/Lower Makefield 

215–493-2600

Brookside offers a unique swim lesson program focused on pool safety and familiarizing our youth in an aquatic environment. Each Class will reflect American Red Cross appropriate skill level. In addition, new this year, we will be offering stroke and turn proficiency for the level 6 swimmers who already participate on swim team but want to develop maximum efficiency.

The Village 2 Swim & Tennis Club

2 Rittenhouse Circle, New Hope, PA 18938

215-862-3010

Village 2 Swim & Tennis Club offers six sparkling clean swimming pools:

• 6-lane, 25-meter lap pool
• Deep-water diving pool with three diving boards
• Sports pool
• Secluded lounging pool
• Upper deck pool
• Children's pool with fountains

The children's pool is a great place for small children to enjoy the water, while parents relax around the pool or on nearby lounges. And it's only steps away from the locker and bathroom facilities.