If a house appraises for $26,000, but needs $25,000 in repairs, how much should I offer to buy it?
If a house appraises for $26,000 and it is said to need $25,000 in repairs to be livable. What is the true value I should offer the bank?
The real question is, "What is the value of comparable properties in the area?"
If the value of comps are in the $26,000 range, then you should pay $1,000 because the appraisal price is unrealistic and $1,000 is what the net value of the house is worth today.
On the other hand, if the value of comps are in the $50,000 to $60,000 range, then the appraiser had a great eye for spotting the existing damage and priced the house accordingly. If the comps are $51,000 or more, then $26,000 is a fair market value of the property.
For a longer discussion of valuing houses, see the Bills.com resource House Value.
I hope this information helps you Find. Learn & Save.
Best,
Bill
The mortgage market: what's new?
It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate
Mortgage rates April 3, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 3, 2024 is 6.82%. This represents a 3 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for April 3, 2024 is 6.11%. This is a 10 basis points decrease from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for April 6, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 6.95%
- 15-year conventional loan is 6.13%
Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,847. A 15-year mortgage would require a monthly payment of around $2,374.
Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.
