Are You Paying More than the Appraised Value For Your New Home?

That’s right! One of the dominant trends in the Miami real estate market is that buyers are willing to pay more than the appraised value for their new homes. You will notice this trend more in areas like Palm Beach, Kendall, North Bay Road and Miami Beach. The top reasons for buyers paying more than the appraised value are:

There Isn’t Enough Appraised Homes

After the economic downslide several homeowners had to lose their houses to foreclosures and several had to declare themselves bankrupt. This financial crisis saw them being blacklisted by the leading banks. As a new buyer you would never want to buy a property that has been blacklisted by the bank since you will not get enough financial aid for it. This increased number of foreclosures and bankruptcy left very few good homes in the market. The demand for appraised houses is on the rise therefore and this is making the owners of appraised houses ask for prices higher than the appraised amount. This along with several projects for new Miami condos, being closed for lack of finances, has caused a shortage of appraised houses in the city.

Competition From Other Buyers And Investors

With the real estate market looking up and prices of property rising, people are starting to buy property and homes before the prices rise any further. There are a large number of potential buyers and investors in the market, but the number luxury condos like Apogee Miami apartments are less than that. This scenario follows the basic economic policy of greater demand and limited supply and hence the homeowners are in a position to ask for prices higher than the appraised value of the property and the buyers won’t think twice before signing the deal. Buyers feel that if the get a great home and are asked a price higher than the appraised amount, they are not in a position to check out other houses since another buyer may just accept the asked price and they would lose the house.

Low Rate Of Interest

When the seller asks for a price higher than the appraised value, buyers have to cover that difference by paying the amount on their own as banks will not pay more than the appraised amount for a property. This seems like a bad decision because the buyer will have to start paying back the interest and also end up losing a chunk of money by paying the difference. However, since the banks have very low interest rates to favour investment in the real estate market, this problem is avoidable. This makes sealing a deal on a great house at a greater price a good decision.

If you are in a position to pay the difference in the amount on your own and have found a house that you would want to buy, then read through the paper work, consult your real estate agent and sign the deal.…


2 Things to Remember When You Are Inquiring about Your Credit Report

Inquiring about your credit report with the leading credit rating agencies in the country seems to be the most obvious answer to the most pertinent worry in your head ‘is 710 a good credit score?’ But have you ever wondered what the implications are of inquiring about your credit report with the credit rating agencies?

As you must know, credit inquiries account for nearly 10% of your credit score and thus it is a significant portion that you need to take care of in order to have the perfect credit score for your next loan application. Keeping this in mind, here are 2 things that you must know regarding credit report inquiries:

1.The Types Of Credit Inquiries

The credit rating agencies classify the credit report inquiries in two major types.

a. Hard Inquiries

Inquiring about Your Credit ReportThe hard inquiries of your credit report are the ones that are placed by prospective lending companies like car loan providers, credit card providers, mortgage owners, etc. These credit inquiries are made against your name with the credit reporting agencies once you apply for a loan from one of the credit providers in the market. This is also the only type of inquiry that counts towards your credit score.

This means that every time there is a hard inquiry against your credit report, your credit score will take a slight negative impact. In order to make the whole process convenient, the credit reporting agencies don’t count multiple hard inquires towards the negative implication if they are placed within a period of 14 days. This is why you are heavily recommended you complete your loan application process with the big ticket lenders in one go in order to avoid multiple inquiries.

b. Soft Inquiries

The soft inquires of credit report are those inquiries that you or your employer or your business partners make against your name in order to gain an understanding of your credit position and payment history. These types of inquiries don’t have an adverse effect on your credit score and can be made only when you have authorized the concerned body to have access to your credit report.

In this case what you must remember that though multiple soft inquiries don’t have an adverse effect on your credit score, it will require you to pay a lump sum amount of money beyond the first credit report that you obtain from your credit reporting agency. The FICO guarantees you one free credit report per year for each credit reporting agency and beyond that you will need to pay the declared amount.

2. Effect Of Inquiries On Your Credit Score

As you just read, hard inquiries negatively affect your credit score and are considered against you. This is because of the fact that with multiple inquiries you come across as a risky borrower to the credit reporting agency as they classify you as someone who is desperate for loan or is in some type of financial trouble and is turning towards credit to pull himself out. This is why it is recommended that you keep the hard inquiries on your credit report at the basic minimum.

With these 2 aspects of credit report inquiries clear in your head, the time is right to go ahead and start shopping around for the next big loan that you had planned!…