December 11, 2019
Everyone in Hollywood wants to be famous – even the houses. The Boutique Real Estate Group founder Raj Qsar is merging entertainment and real estate to give each home’s story some screen time.
December 11, 2019
Everyone in Hollywood wants to be famous – even the houses. The Boutique Real Estate Group founder Raj Qsar is merging entertainment and real estate to give each home’s story some screen time.
As I walked into the lobby of the Cheddar Los Angeles TV building in #hollywood this morning I was hit with a huge neon sign that read, “do what you love.” 💡 My mind travels 100 MPH in a 55 MPH world so it is difficult to pause, reflect and take it all in and realize that I am doing what I love. So I made the most of my 6 minutes on the air today with co-hosts Max Godnick and Alyssa Julya Smith on CheddarTV 📺 chatting about my journey in real estate, video marketing, and social media. When we were done I just wanted more. I was like, “it’s over? Ask me more?” So what’s next? Video clip coming soon… 😉
November 15th, 2019
Catch video pioneer and real estate influencer Raj Qsar on CNBC Squawk Box chatting about the influence of video marketing with his real estate company. Homes selling for more money and faster using highly produced and directed video marketing.
Raj’s story goes a little something like this. Beautiful design evokes emotion. Emotion stirs the soul and creates a connection between client, agent and the home buying or selling process. The Boutique Real Estate Group has invested heavily in bringing all aspects of the real estate experience completely in-house. From custom design, professional staging, architectural photography, award-winning cinematography, and social media to technology, internet optimization, cloud-based transaction management, and global listing syndication. This not only provides The Boutique with complete control of the design, marketing & technology of luxury real estate but also gives them the look & feel of a true boutique marketing agency. This design & tech-forward approach has earned The Boutique Real Estate Group accolades & awards worldwide.
By Debra Kamin // Nov. 12, 2019, 1:53 a.m. ET
Raj Qsar is eyeing the sky nervously. It’s early afternoon in Corona Del Mar, Calif., and his six-man camera crew is on the clock only until sunset. But clouds are rolling in fast over this wealthy Southern California neighborhood, and the next scene on today’s docket — a glamorous drive down the Pacific Coast Highway followed by a beachfront double date — is now feeling tricky.
On other film sets, the producer and director might huddle and order a break, or call it a wrap until tomorrow. But Mr. Qsar isn’t a director — he’s a real estate agent. And the star of his film is not a good-looking young actor (although there are four of those on set), but rather, a $1.7 million Orange County home. This short and sudsy film, he hopes, in which two young couples drink wine, play board games and wander through sleek, neat rooms, will do the trick to attract a buyer.
“Telling stories and creating connections with people takes more than just photos,” said Mr. Qsar, who heads a luxury brokerage called The Boutique Real Estate Group. “For us now, it’s all about the power of video.”
Video marketing is not new territory for home sales — wide-angle walk-throughs of staged living rooms and sweeping drone footage of leafy neighborhoods have become common tools in real estate agents’ kits. But cinematic mini-films, complete with paid actors, lighting crews and full-fledged story boards, are something new.
Mr. Qsar began dabbling in cinematic videos in 2008, just two years after leaving his job as a pharmaceutical sales representative to jump into the Orange County housing boom. He came across a wedding videographer who was producing emotionally charged, story-driven films for brides and grooms, and, he says, a light bulb went on.
“I had an idea about telling the story the same way, but as the story of a house,” he said. “One of the things I always tell my clients when they walk through is, ‘Can you see yourself having Christmas dinner here or birthdays and bar mitzvahs here?’ I wanted to really pull out the emotional aspect.”
After putting the wedding videographer on his payroll and investing $20,000 of his own money in video equipment, he made a handful of short film promotions for homes in the $1 million to $2 million range in Orange County, including a four-bedroom Mediterranean-style estate in Villa Park.
In that video, images of a young blond wife sitting at a piano and singing Frank Sinatra’s “Summer Wind” are spliced with images of a Porsche-driving husband arriving home from work. As he showers upstairs, the wife ushers in a flock of eager friends and children with balloons and sets up a surprise party by the pool. The song reaches its crescendo, the husband descends the stairs, and there’s his family, there’s a cake, and there’s a sweet, picture-perfect backyard celebration.
When that home sold, for $1.7 million, it set a record as the most expensive home sale ever in Villa Park.
“Once real estate agents started doing high-end video productions, putting in models and actors was a no-brainer,” said Jimm Fox, president of OMM Video Marketing, a Canadian agency that tracks trends in cinematic storytelling. “You’re not just selling an address, you’re selling a lifestyle. And to do that, you need humans.”
Production budgets for these films can range from $3,500 to $70,000. Often the real estate agent is picking up the tab, but in some cases, agents discuss their plans with sellers and agree to split the bill or have the costs added to their fees.
Mr. Fox said the trend for Hollywood-style videos kicked off around 2007 and was a natural progression from the lush but empty footage of staged homes that preceded it.
“Real estate at the high end is always an aspirational sell,” he said. “You want to showcase a lifestyle. So you start shooting homes, and then you add models to make it more vibrant, and very soon you want to turn it into a story.”
The Australian production studio PlatinumHD claims to have been the first to produce these Hollywood-style real estate films. In 2011, the studio helped the trend spread internationally by producing a video for the Queensland-based property management firm Neo Property.
In it, a young woman clad only in a lacy bra and panties and bound to a chair inside a hyper-modern luxury home, makes an emergency call for help and is asked to describe where she is. As she describes the home’s chef’s kitchen and waterfront views, its in-house movie theater and its private elevator, a SWAT team descends to rescue her, led by none other than Neo Property’s real estate agents themselves.
The film, of course, is as much about the appeal of the model as the home. But by using sex, helicopters and shots of a gleaming red Corvette to sell the property, Neo made it quite clear: In this sort of marketing, peddling a fantasy can help close a deal.
Ben Bacal began adding actors to his listing videos in 2014. The Los Angeles-based agent, a former film student who also dabbles in internet companies and has more than $2 billion in sales to his name, is a fixture on the high-priced home circuit in Hollywood. He offers his clients a professionally produced video for every home he agrees to represent, and he estimates that in 40 percent of those cases, he includes actors and a story line.
Some are sweet: A home in Bel Air, which he listed in March 2016 for $48.5 million, shows a brother and sister channeling their best Ferris Bueller impressions, faking sickness in their custom bedrooms before dashing out to their backyard infinity pool with skyline views after their parents head off to work. (The home sold for $39 million in December 2016.)
Others are more slapstick, like the film for a home on Rising Glen Road in Los Angeles (the house where the actress Brittany Murphy died), in which an adorable corgi named Sherlock Bones inherits the mansion listed for $18.5 million and heads there to live his best canine life. (That home sold in 2017 for $14.5 million.)
In all of Mr. Bacal’s videos, plots are thin but visuals, and humor, are laid on thick. That’s intentional, he says.
“Instead of telling a long dramatic story, I like to pull characters through the house and do something that makes it voyeuristic, where you can see the property. Focusing too much on story takes away from the home,” he said in a phone call from Mykonos, Greece, where he was on vacation. “I’m not Quentin Tarantino.”
His greatest triumph to date is a home on Hillcrest Road in Beverly Hills. Markus Persson, the Swedish video game programmer behind Minecraft, saw the short film that Mr. Bacal produced for the eight-bedroom, 15-bath home, showing two young women arriving in a Rolls-Royce and enjoying the home’s features, which include a candy room and a 24-seat theater. Beyoncé and Jay-Z were also reportedly interested in the property, which was priced at $85 million. Just seven days after seeing the film, Mr. Persson purchased it for $70 million.
Mr. Bacal credits his success to his ability to not just create compelling footage, but also to distribute it effectively.
He pours cash into boosting the films on YouTube, advertising them across Facebook, Twitter and LinkedIn and promoting them in the right markets. In Mr. Persson’s case, Mr. Bacal had made the decision to promote the mansion not just in the United States but also in Sweden, a decision that paid off.
“It’s not just about creating a 90-second video. It’s also about knowing how to use video to effectively market that property. And that’s going to mean breaking it up into smaller components and using social media platforms to promote it,” said Mr. Fox, the Canadian marketing executive.
It makes sense that Hollywood-style promotional real estate is hitting a peak in Southern California, said Jonathan Miller, a New York City-based real estate appraiser and consultant. That’s because the high-end market from Los Angeles to San Diego is flush with inventory, creating longer marketing time, reduced foot traffic at open houses and greater competition between agents.
“In a market where there’s escalating supply but still anchored to another time, the sellers are trying to market much more creatively,” Mr. Miller said. In his mind, the sleeker and more expert-looking the video, the more likely it is that the seller is trying to justify a high price tag.
“When I see these videos, or something like a camel at an open house, that’s a clear sign of something that’s overpriced,” he said.
Mr. Qsar, the Orange County real estate agent, produces a video for every home that he represents, spending from $2,500 to the low six figures to produce them. He pays out of his own pocket. While he has had eight-figure listings, most of his sales are in the $1 million to $2 million range.
“Fifteen years ago, I never thought I’d be shooting films,” said Mr. Qsar. “I had a day job and just wanted to sell a couple houses and see what happened. But then I sold 10 and then 15 and 20, and then social media hit, and I thought, ‘O.K., how can I be different?’”
In the hypercompetitive world of Southern California real estate, he said, it’s worth it because his videos give him a definitive edge.
“Our listings are recognizable before they even hit the market, because people see them on social media,” he said. “So now, every time I get together with my team on a house, the first question we ask is, ‘What is the story going to be on this house?’”A version of this article appears in print on Nov. 16, 2019 in The New York Times International Edition. Order Reprints | Today’s Paper | Subscribe
SafeWise is happy to release our fifth annual Safest Cities report. Here are the 50 Safest Cities in California for 2019. See if your city made the list.
California saw some big challenges in 2018—and one of our safest cities, Thousand Oaks, went through two major events. This community faced a mass shooting and a devastating wildfire. But it was able to limit both violent and property crime to below state and national averages in 2017, making it our 28th safest California city.
Overall 86% of this year’s safest cities are on the list for the second consecutive year. And Northern California gained one more city this year, to claim 40% of the state’s safest cities—plus the number one city, Danville, is from the north. But Southern California continues to dominate, with 30 of its cities making the list.
The five safest cities in California in 2019 are Danville, Irvine, Rancho Santa Margarita, Yorba Linda, and Murrieta.
Take a look at the full list to find out how your city ranks, and whether it’s one of the Golden State’s safest places to live.
Earthquakes were the number two environmental concern of Californians on our State of Safety report—60% named quakes their biggest natural disaster fear, coming in behind air quality with 72%.
Population45,088 Median Income$152,798 Violent Crime Rate (per 1,000)0.35 Property Crime Rate (per 1,000)7.83
Population: 276,115 Median Income: $95,573 Violent Crime Rate (per 1,000): 0.61 Property Crime Rate (per 1,000):13.16
#3 Rancho Santa Margarita
Population: 49,144 Median Income: $106,939 Violent Crime Rate (per 1,000): 0.65 Property Crime Rate (per 1,000): 6.67
#4 Yorba Linda
Population: 68,889 Median Income:$123,962 Violent Crime Rate (per 1,000):0.65 Property Crime Rate (per 1,000):10.36
Population68,889Median Income$123,962Violent Crime Rate (per 1,000)0.65Property Crime Rate (per 1,000)10.36
Population113,016 Median Income$80,373 Violent Crime Rate (per 1,000)0.71 Property Crime Rate (per 1,000)14.00
Population113,016Median Income$80,373Violent Crime Rate (per 1,000)0.71Property Crime Rate (per 1,000)14.00
#6 San Ramon
Population76,325 Median Income$142,718 Violent Crime Rate (per 1,000)0.73 Property Crime Rate (per 1,000)12.76
#7 Rancho Palos Verdes
Population 42,563 Median Income$124,552 Violent Crime Rate (per 1,000) 0.78 Property Crime Rate (per 1,000)10.48
Population78,155 Median Income$106,718 Violent Crime Rate (per 1,000)0.82 Property Crime Rate (per 1,000)15.73
#9 Laguna Niguel
Population65,700Median Income$99,206Violent Crime Rate (per 1,000)0.82Property Crime Rate (per 1,000)8.72
#10 Aliso Viejo
Population51,984Median Income$106,353Violent Crime Rate (per 1,000)0.85Property Crime Rate (per 1,000)7.58
#11 Chino Hills
Population79,480Median Income$102,746Violent Crime Rate (per 1,000)0.88Property Crime Rate (per 1,000)17.14
Population62,422Median Income$110,685Violent Crime Rate (per 1,000)0.88Property Crime Rate (per 1,000)21.13
Population47,741Median Income$78,647Violent Crime Rate (per 1,000)0.92Property Crime Rate (per 1,000)12.67
#14 Diamond Bar
Population56,996Median Income$94,531Violent Crime Rate (per 1,000)1.00Property Crime Rate (per 1,000)18.30
Population115,220Median Income$87,115Violent Crime Rate (per 1,000)1.02Property Crime Rate (per 1,000)22.69
Population63,735Median Income$91,995Violent Crime Rate (per 1,000)1.04Property Crime Rate (per 1,000)17.81
#17 Mission Viejo
Population: 96,928 Median Income: $107,988 Violent Crime Rate (per 1,000): 1.04 Property Crime Rate (per 1,000)1: 0.00
Population: 50,438 Median Income: $102,338 Violent Crime Rate (per 1,000) : 1.15 Property Crime Rate (per 1,000) :11.42
Population: 84,440 Median Income : $138,269 Violent Crime Rate (per 1,000): 1.17 Property Crime Rate (per 1,000):19.67
Population: 154,919 Median Income: $118,314 Violent Crime Rate (per 1,000) 1.17 Property Crime Rate (per 1,000):17.31
#21 Fountain Valley
Population: 56,704Median Income: $86,602 Violent Crime Rate (per 1,000): 1.20 Property Crime Rate (per 1,000): 27.88
#22 Foster City
Population: 34,808 Median Income: $136,383 Violent Crime Rate (per 1,000): 1.24 Property Crime Rate (per 1,000): 10.03
Population: 41,509 Median Income: $89,392 Violent Crime Rate (per 1,000): 1.25 Property Crime Rate (per 1,000) : 11.78
Population: 60,970 Median Income: $153,449 Violent Crime Rate (per 1,000): 1.26 Property Crime Rate (per 1,000):15.91
Population: 36,813 Median Income: $102,145 Violent Crime Rate (per 1,000): 1.30 Property Crime Rate (per 1,000):9.02
Population: 35,060 Median Income:$104,703 Violent Crime Rate (per 1,000): 1.31 Property Crime Rate (per 1,000): 25.44
Population: 169,164 Median Income: $73,594 Violent Crime Rate (per 1,000): 1.32 Property Crime Rate (per 1,000):19.49
#28 Thousand Oaks
Population: 129,240 Median Income:$103,793 Violent Crime Rate (per 1,000): 1.33 Property Crime Rate (per 1,000): 13.05
#29 Palo Alto
Population: 67,441Median Income: $147,537 Violent Crime Rate (per 1,000): 1.33 Property Crime Rate (per 1,000): 26.44
Population: 202,381Median Income: $58,657 Violent Crime Rate (per 1,000): 1.35 Property Crime Rate (per 1,000):15.41
Population: 90,403Median Income: $60,808 Violent Crime Rate (per 1,000): 1.36Property Crime Rate (per 1,000): 21.81
Population: 62,235Median Income:$138,007 Violent Crime Rate (per 1,000): 1.37Property Crime Rate (per 1,000): 19.20
Population: 68,540Median Income: $63,071Violent Crime Rate (per 1,000): 1.37Property Crime Rate (per 1,000): 23.62
Population: 53,614Median Income: $58,166Violent Crime Rate (per 1,000): 1.38Property Crime Rate (per 1,000): 17.29
#35 San Clemente
Population: 65,596Median Income: $101,843Violent Crime Rate (per 1,000): 1.39Property Crime Rate (per 1,000): 12.38
Population: 38,619Median Income: $98,102Violent Crime Rate (per 1,000): 1.40Property Crime Rate (per 1,000):16.03
Population: 49,064Median Income: $90,345 Violent Crime Rate (per 1,000: )1.41Property Crime Rate (per 1,000): 14.80
#38 Newport Beach
Population: 86,910Median Income: $119,379Violent Crime Rate (per 1,000): 1.43Property Crime Rate (per 1,000): 24.43
Population: 79,503Median Income: $110,752Violent Crime Rate (per 1,000): 1.43Property Crime Rate (per 1,000):24.88
#40 Simi Valley
Population: 126,635Median Income: $93,516Violent Crime Rate (per 1,000): 1.45Property Crime Rate (per 1,000):14.40
#41 Temple City
Population: 36,500Median Income: $69,853Violent Crime Rate (per 1,000): 1.48Property Crime Rate (per 1,000):15.12
#42 Walnut Creek
Population: 69,953Median Income: $86,845Violent Crime Rate (per 1,000): 1.50Property Crime Rate (per 1,000):32.94
Population: 36,683Median Income: $67,510Violent Crime Rate (per 1,000): 1.53Property Crime Rate (per 1,000):18.62
Population: 141,130Median Income: $83,500Violent Crime Rate (per 1,000): 1.54Property Crime Rate (per 1,000):18.31
#45 Menlo Park
Population: 34,195Median Income: $132,928Violent Crime Rate (per 1,000): 1.55Property Crime Rate (per 1,000):19.18
#46 Lake Forest
Population: 84,224Median Income: $93,963Violent Crime Rate (per 1,000): 1.58Property Crime Rate (per 1,000):8.99
Population: 67,714Median Income: $92,780Violent Crime Rate (per 1,000): 1.58Property Crime Rate (per 1,000):16.04
#48 Morgan Hill
Population: 45,277Median Income: $107,161Violent Crime Rate (per 1,000): 1.59Property Crime Rate (per 1,000):15.95
#49 La Quinta
Population: 41,528Median Income: $76,131Violent Crime Rate (per 1,000): 1.61Property Crime Rate (per 1,000):28.82
Population: 56,698Median Income: $89,812Violent Crime Rate (per 1,000): 1.62Property Crime Rate (per 1,000):16.35
Learn how we identified the safest cities on our methodology page.
Crime statistics are one thing, but do they line up with what people are really worried about when it comes to safety? To find out, SafeWise conducted a nationwide survey. See what the biggest safety concern is in your state—and learn more about what your neighbors are nervous about—in our State of Safety report.
If you would like to contact a SafeWise Safest Cities Analyst, please email firstname.lastname@example.org.
Wherever you live, feeling safe in your home can bring greater peace of mind and happiness. Whether your city made our list or not, we recommend adding extra security to your home with monitored security services.
To learn more about the home security options available to you, check out SafeWise’s picks for Best Home Security Systems.
See how the remaining cities ranked in the list below.
Click here to view original article via Safewise
BRING YOUR OWN PUMPKIN
Please join us for a Pumpkin Painting & Carving Party! Free event! Fun for the whole family. Art supplies will be provided. Taco Cart & Soft Drinks provided.
The event is located at the Lakeview Field in Yorba Linda! Park in the Foxfield Neighborhood on the Corner of Lakeview Ave & Bastanchury Rd (Churchill Downs Dr or Temhurst Court) and walk towards the end of the cul-de-sac to the dirt path to access field.
Sunday, October 20th from 3-6 pm
Call or text Christina at 714-501-8585 for more info and details.
Inman Connect Las Vegas.
Bigger. Better. Bolder.
Author: Raj Qsar, The Boutique Real Estate Group
1. Make a list of the people you want to meet “in real life.” Connect is an amazing time to solidify some of those online relationships and connect with people who you admire and respect and make that true emotional connection. Some of the connections I have made at Connect have become lifelong friends of mine. They are the ones I call when I need advice, encouragement or just a plain old kick in the tush! Remember this quote from Brene Brown “What we know matters, but who we know matters more.” Some of my favorite folks include who can show you the ropes at Inman include: Vanessa Jones Bergmark, Sara Sutachan, Seth Price, Andrew Flachner, Alyssa Hellman, Lynn Johnson, Rob Hahn, Laura Brady, Chris Smith, Jimmy Mackin, Leigh Brown, Bill Lublin, Celeste Starchild, Katie Lance, Debra Trappen, Valerie Garcia, Joe Schutt, Jay Thompson, Heather Elias, Laura Monroe, Teri Conrad, Audie Chamberlain, Joe Rand, Wendy Forsythe, Sam DeBord, Seth O’Bryne, Jason Cassity, Caroline Pinal, Troy Palmquist & Veronica Figueroa, and so many others….
2. Attend & be present in as many sessions as you can possibly attend! DO NOT MISS ANYTHING. Specifically, look for the sessions that pull you out of your comfort zone and will challenge you on a personal & professional level. See the full schedule here and meet the speakers here. This year catch Molly Bloom on the main stage sharing the story of “the most exclusive high stakes underground poker game in the world.” 😮
3. Have you joined the Inman Coast to Coast Facebook Group? If not join here for all the latest posts, connections and updates. Hashtag is #ICLV
4. The Party after the Party! Do I need to say anymore? This is VEGAS! Text “PARTY” to 415-818-1555 (thanks Jessie) to find out about all the parties, after-parties and events at #ICLV. We all know the real fun starts after midnight! So just ask around, jump in an Uber (download app here) or Lyft (download app here) and find out where the action is. Check your email for last-minute invites to all the happening VIP parties and events. If you still can not find the party make sure to DM Joe Schutt or Laurie Weston Davis (they will steer you in the right direction, I promise). If you are looking for the top-secret karaoke party then there is only one name you should know 👉🏼 Notorious.
5. Lobbycon! You have heard all the rumors and it is true! You will find everyone in The Aria’s Lobby Bar (open until 2am) and this is the spot where you will meet the CEO’s, Founders, Presidents, movers & shakers all just “hanging out.” Bring your selfie stick & business cards and make sure to say hi. BTW, when is the next time you will be in the same hotel with folks like Brad Inman, Sherry Chris, Sharran Shrivatsaa, Rich Barton, Glenn Kellman, Robert Refkin, Glenn Sanford, Ryan Gorman, Eric Wu, James Dwiggins, Joel Singer, Leslie Appleton Young & Josh Team.
6. Get out of the hotel! VEAGS is an amazing city with sights, sounds, history and killer food! Check out this list of The Best Restaurants in Las Vegas via Thrillist. Then catch a show! Or check out some of the worlds best clubs or pool parties. Jump in a helicopter over the grand canyon or do the superman zipline over vegas. Also, everyone loves a good speakeasy and they are all the rage now in Vegas. Here is a great list to tackle.
7. Stay fit and drink a ton of water. It will be over 100 degrees the whole week we are in Vegas and you will be eating, drinking & sitting in a lot of sessions. Please make sure to stay mentally & physically fit at the hotel gym, or find the local SoulCycle, OrangeTheory, CrossFit Gym, TopGolf or 24 hour fitness. If you are still alive midweek there is a group hitting SoulCycle at The Wynn on Wednesday morning at 7am.
8. Ambassadors. These are the ones who will lead us through the first ICLV. Joe Schutt & Laure Weston Davis have been “in charge” of this program for years now and if you have a question about anything ICLV these are the folks to ask. Have you met them? If not connect with them here.
🔥If you made it this far and are headed to #ICLV please find me in one of the sessions, lobbycon or at one of the after-parties. I would love to connect with you and hear your story.
Raj Qsar, The Boutique Real Estate Group, www.TheBoutiqueRE.com
A real estate appraisal is a report by a certified inspector that determines the value of a property based on its features and condition. Buyers compare this value to the home price to ensure there is not a large discrepancy. Appraisals are also required by lending institutions to secure loans for the purchase of property.
A home appraisal is an independent report about what a property is worth and how much the buyer should pay for it. To secure an appraisal as part of the homebuying process, the buyer or the mortgage lender researches appraisal companies, determines the best fit based on price and reviews, and hires a company. Once a seller accepts an offer letter, the buyer schedules a visit from a real estate appraiser to determine the value of the home.
To find a qualified appraiser, a buyer typically works either with the lender or with their real estate agent to determine best options. These are reviewed and vetted based on price and testimonials from prior clients. Then the appraiser is selected and conducts a full home appraisal after the seller accepts the buyer’s offer.
During the on-site appraisal of the property, the home appraiser looks for any damage and potentially costly repairs. He or she will also consider sales prices of comparably sized homes in the area to help determine the amount that the house should sell for in the current market. After considering these factors, the appraiser determines a home value that the lending institution uses as the basis for its final loan amount. This also serves to validate the initial buyer offer.
The report of the appraiser reinforces that the house is a sound investment for the buyer and the lending company. If the property is valued significantly lower than the initial offer, however, then the buyer can renegotiate the offer price.
A residential real estate appraisal costs between $300 and $400, depending on the area and the company. The cost for a real estate appraisal is determined by the size of your home, the location of your property, and the company you pick to do the inspection.
A real estate appraisal is comprised of four main parts, including the property description, market information, best use, and property valuation. Collectively, these four pieces are used by the lender to determine the home loan amount.
These are the four main sections of a real estate appraisal:
Many people confuse a real estate appraisal with other types of home inspections, like termite or sewage inspections. A residential real estate property appraisal, however, only involves examining the property for foundational or structural damage or anything that might negatively affect an investment due to costly repairs. Determining an accurate valuation is the priority for a real estate appraiser because it is the basis for the bank’s approved loan amount.
Property valuation, which is part of a real estate appraisal, is calculated using one of three different approaches: a sales comparison, cost, or income approach. These give both the lender and buyer an idea of the property value. The approach used by an appraiser is dependent on the type and use of a property.
Here are the three property value approaches used in a real estate appraisals:
By using one of these methods for a real estate appraisal, the final valuation report reflects the value of the property and―or does not support―the price of the property set by the seller. The approach is decided upon by the inspector and is dependent on the type of property.
It can be difficult to understand the role of the appraiser in the real estate sales process and how an appraiser protects the buyer during the homebuying process. With this in mind, we asked seven top real estate appraisers and agents to share their best tips for a successful residential real estate appraisal.
Here are the top seven pro tips for making the most of your real estate appraisal:
The first place a potential buyer should look―if they are hiring outside of the loan process―is to ask the following people for names [of appraisers]: real estate agents, attorneys who handle real estate transactions, building inspectors, and other appraisers. Typically, what will happen is that one name will keep resurfacing as someone who really knows their profession and can appropriately handle the buyer’s questions.
Appraisers will check the external factors of your home such as the site, quality of construction, integrity of roof and foundation, issues with gutters and siding, parking, and the neighborhood. Inside, they are most concerned with square footage and functionality of the layout. For a complete list, you can ask for a copy of the 1040 URAR form that appraisers use.
One of the main things an appraiser will look at to value your property is recent sales of comparable properties in the area. Make sure you review the relevant comparables with your real estate agent so that you aren’t caught off-guard by a lower-than-expected appraisal.
An appraisal is a safeguard, so the buyer doesn’t overpay for a property. Of all the people involved in the homebuying transaction, the appraiser is the only party that is unbiased. They do not have a stake in the game. The appraisal requirement is in place to protect all involved parties by providing an unbiased, independent opinion of value to ensure the property provides adequate collateral for a loan.
A property inspection and appraisal report will both need to be completed. The inspection tells you if there are any repairs needed, and the appraisal will give the definitive value. Depending on what they say, you may have some room to negotiate the price.
The most important factor in an accurate appraisal is having someone with local knowledge that knows the nuances of the neighborhood, any pending zoning changes, and local market conditions. An appraiser who lives outside of your county or city is more likely to provide an appraisal that misses the mark. You can ask who is doing the appraisal and ask where she/she is from. If they’re not local, ask for another appraiser.
In the case of a low appraisal, your agent can either assist in disputing the appraisal or negotiate with the seller on your behalf to see if the selling price can be lowered. Lowering the purchase price may cause an issue with your lender, but there are a number of options available in the case of a low appraisal. A good real estate agent will consider all of these options and guide you through the process.
The buyer pays for the real estate appraisal as a part of the closing costs. If you are using a Federal Deposit Insurance Corporation (FDIC)-insured lender like a bank or credit union, then they will pick the appraisal company. If you are not using lending sources for a mortgage, then you can pick your own appraisal company.
The seller does not get a copy of the real estate appraisal unless you give it to them. In cases where you want to negotiate the price after the appraisal, you might need to supply the seller with a copy of the report to justify your request to lower your offer.
If the real estate appraisal contains inaccuracies like the wrong house area comps or features, then you can report these issues to the appraiser. Your real estate agent can help you review the report and figure out where the problems are if you get an unexpected result.
Some real estate agents can do appraisals because they are trained and certified for a home inspection. A real estate agent representing the buyer or the seller should not do a home appraisal for your property, however. A home appraisal should be completed by an impartial third party with no ties to either the buyer or the seller.
You can ask your agent or a real estate lawyer for a reference for an appraiser. If you would rather research appraisers yourself, then you can use the Appraisal Institute’s advanced search to find an appraiser in your area.
A residential real estate appraisal is a report from an independent, trained inspector hired to determine the value of a property based on home or sales values in the area, damage to the property, and overall property condition. A home appraisal costs between $300 and $400 and is paid for by the homebuyer. A home appraisal makes sure that the seller’s asking price is in line with the value of the home so that a buyer does not overpay.
An appraisal— alongside real estate contacts and sales documentation—can be full of hard-to-understand legal terms and concepts. Rocket Lawyer can look over home appraisals, offer letters, and contracts for a fraction of the price of a lawyer to help you fully understand every part of the homebuying process. Find out more about Rocket Lawyer’s services today.
Link to original article: https://fitsmallbusiness.com/real-estate-appraisal/
Marketing is all about story telling – Stories stir emotions in us, create connections, and motivate us to act. In real estate marketing, we must learn to listen to our clients, hear them, understand them, and push THEIR story out into the market place. We are telling their story, not ours. The practice of using “beautiful design to evoke emotion” is what helped launch Raj Qsar and The Boutique Real Estate Group into a massive success. Raj felt so strongly about the need for unique design work in his company that his first hire was a graphic designer. Today, Raj is expanding his company, developing his high end branding, continuing his extensive and wildly famous listing videos, and traveling the world speaking for Inman. Tune into this special episode to learn how important it is to market with intent, and to not only listen to what others are doing, but WATCH what they are doing.
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You can not make this stuff up! If you have 60 minutes then please hit the play button. If you know Keith Saarloos or Raj Qsar you will not want to miss this epic LOVE FEST! Two guys who are doing something they are NOT supposed to be doing. I will personally call this episode Passion in a Bottle Part 2.
The stories. The passion. The love.