Napa Valley Real Estate & Homes Info Tips

Setting the right selling price on a home is one of the most critical steps in the selling process. Setting the price too high will mean that you don’t generate a lot of interest. Setting it too low will mean that you don’t get as much money as you could have; it may also mean lower interest because you missed a key Napa Valley demographic.

Market value is based on the market. Quite simply, people don’t care about how modern your bathroom is or the paradise that is your backyard. If your house is priced well above similar houses in your neighborhood of Napa Valley, you won’t be able to sell. In order to find a price that is fair and that will generate interest, you will have to look at what similar homes in your neighborhood are selling for.

Don’t compare apples to oranges. “Similar houses” is kind of generic, so let’s try to define what it means. Houses that are similar are typically the same in age, number of rooms, and lot sizes. The layout of the kitchen, the layout of the rooms, the way the yard has been done may all be different, but those three factors are always constant. Don’t compare the price of a three bedroom house with that of a four bedroom house; that one room will make a difference of thousands of dollars.

Why don’t improvements matter that much? You may think that the fact that you have added a workshop or a swimming pool adds to what you can ask for your house, but this is not the case. When you are setting a sale price, you are trying to set a price for as wide a range of people as possible. Adding dollars on for improvements that you think are well worth it immediately narrows down interest in that price to people who think like you do. In the Napa Valley real estate market, the house with the most interest will fetch the highest price. It’s important, therefore, to base the price on features that are commonly sought after by everyone.

There are lots of tools available that can help determine what price you should ask for when selling your home. Searching Internet databases for recent sales of homes in your neighborhood as well as listed property values for the Napa Valley area can be a good starting point for determining a sale price. The time of year will probably be a factor in the price of your home as well; the only reason to sell in fall or winter is that you need to get out quickly. Otherwise, wait until spring or summer when the Napa Valley market is typically hot and prices slightly higher.

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Real Estate Tips

Standard real estate purchase agreements usually contain language that releases the purchaser from an agreement if they are unable to get financing within a specified period of time, with a full return of their earnest money deposit. If you are buying a home, you should read the financing clause carefully and be sure that you fully understand the terms of the agreement.
You are usually required to apply for your loan promptly and to comply with requests from the lender for any documentation needed to complete the loan application. The contract will also set a time limit by which you must have loan approval. If your lender cannot meet the financing deadline and needs additional time to complete the loan, you must ask the sellers for a written extension.

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Loan Pre-Aproval

Many lenders help prospective buyers get pre-approved for a mortgage loan before they begin a serious house-hunting effort. Give the loan officer all of the information about your assets, income, and debts so they can tell you how much money you will be able to get under the available loan options. The loan officer will do a credit check and work with the lender to straighten out any problems with your credit rating.
Pre-approval from a lender can make you more attractive to the seller when you find the home you want. Occasionally multiple offers come in on a house, and you find yourself competing with other buyers. In that case, it is helpful if you have included a letter from the lender with your offer stating that you have an approved loan and are, indeed, qualified to buy.

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Home Buyers Tips

As the number of mortgage lenders increases, competition forces lenders to get more creative in finding ways to lend people money. This often takes the form of a "break" in the down payment. The downside of this approach is that statistically, the smaller the down payment, the more likely the borrower will default. Lenders have put together an education program to prevent delinquencies, which fills a much-needed gap in the increasingly complex world of home finance.
Home buyer education classes focus on a variety of money management topics, including all the costs connected with obtaining and owning a home. One lender got together with FANNIE MAE (a government-sponsored loan guarantor) to launch a 3 percent down payment loan which requires participation in this education course.