Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Joining me in studio this morning is Matt Heyman of
Rock Realty.
Speaker 2 (00:03):
Matt, how you been. Oh, I've been good. I've been good.
Speaker 3 (00:05):
Enjoying this rainy day.
Speaker 2 (00:06):
Yeah, I think we needed some rain.
Speaker 3 (00:10):
Yeah, I did notice the grass was getting a little discolored.
Speaker 2 (00:13):
Yeah, the ground was really solid.
Speaker 1 (00:16):
So it's good for all, good for everyone to get
a little bit of rain. And we've got a great
conversation this week. We're going to be talking about understanding
the appraisal process and different options as well that you
would apply with your your appraisal. They're going to need them,
whether it's like a FAHA or VA. Talk about some
of those loan programs in just a moment with Matt.
But first, of course, we always do a featured listing
(00:38):
in this week, Matt, you brought a palace.
Speaker 2 (00:40):
You brought for.
Speaker 1 (00:41):
Folks that have spent any time in Janesville, they know this.
There is a couple of really historic neighborhoods with these
just amazing homes that have been so well taken care
of and great neighborhoods. And this week's featured listing is
a beautiful home in one of those very neighborhoods. Let's
talk about this, uh, this house on Garfield Street in Janesville.
Speaker 3 (01:05):
Yeah, it's in that Jefferson Avenue Historical district. Just a
magnificent like colonial that's been really well preserved as awesome
curb appeal, huge home, twenty eight hundred square feet and
you know you're sitting with a three bedroom, two and
a half bath over a third acre lot, just about
(01:27):
everything you'd want. And something like this, you know.
Speaker 1 (01:30):
It's and it's as you look at it too, it's
it could fit in like in like Washington, d C.
Speaker 2 (01:35):
I mean, it's like one of those kind of.
Speaker 1 (01:36):
Nice yeah, the styling and when we talk about houses
like the houses like this don't go on the market
all that often. These are the type of homes like
this house. I don't know the history of it, but
I'm gonna guess whoever owns it or owned it previously
probably had it. It may have been a generational type thing.
These are like those kind of houses that that people
(01:57):
just hold on to. And what a great opportunity to
have something like that.
Speaker 2 (02:01):
Yeah, exactly.
Speaker 3 (02:02):
And it's an area of people kind of are waiting
to move into. You know that it's you know, it's
not for everybody. But for those that are looking for,
you know, a colonial with just a ton of character.
I mean, this thing has three different woodburning fireplaces, like
how often do you say that? Exactly, sunroom, formal dining room,
(02:23):
it's just just really tastefully updated kitchen. Just just an
awesome home. And it's located at to two South Garfield
Avenue in Janesville, currently listed for five hundred and nine
thousand dollars.
Speaker 2 (02:36):
Three bedroom, two and a half bath.
Speaker 1 (02:37):
Today's day to call Lindsay if you are looking for
a really just a beautiful home, kind of a little
a statement piece, something that I guarantee, if there's something
you see yourself in, You'll be talking with your friends
and family for years about the reason why you bought
this house, because it isn't showing it off. You'll be
doing Christmas and the holidays there because it is.
Speaker 2 (02:56):
A beautiful home.
Speaker 1 (02:57):
Give Lindsay a call this morning six of eight nine three,
one seventy eight sixty three. That's six oh eight nine three,
one seventy eight sixty three to talk to Lindsey about
the showing for this beautiful home on Garfield Avenue.
Speaker 2 (03:09):
Again.
Speaker 1 (03:10):
You also check it out rock Wisconsin dot com. That's
Orock Wisconsin dot com. We've only scratched the surface on
some of the really cool features of home. So we'll
talk a little bit more about this week's featured listing
a little bit later on the program. This week, though,
we're going to talk a little bit about the appraisal process.
And uh, kind of sounds straightforward, and then you start
(03:30):
getting into it and you're like, oh, this is an
interesting There's a little bit more to it than just
simply going, Ah, that house about three hundred thousand, I
write a thing out there, you go. A lot of
work goes into it. Let's talk about a little bit
about the appraisal process and why you need an appraisal
if you're buying a home with a mortgage.
Speaker 3 (03:48):
Yeah, and sometimes it gets confused with the assessment.
Speaker 2 (03:51):
Oh yes, right, Yes.
Speaker 3 (03:52):
The assessment's just something that you know, when the local
municipality your town or city sends out somebody to try
to get evaluation kind.
Speaker 2 (04:00):
Of a just tax design you.
Speaker 4 (04:02):
Yes, the appraisal offer, that's that's.
Speaker 3 (04:04):
For the lender, right for the most part. You know,
you can order your own appraisal if you're offering in cash,
just to kind of get that comfort level that you're
not overpaying. But in general, every lender is going to
require an appraisal. So after you have a home under contract,
at that point, the buyer's lender will send out an
appraisal or appraiser to go take a get evaluation of
(04:27):
the property.
Speaker 1 (04:28):
Start learning terms like loan to value and some other
other terms as well. When you work through that, uh,
that process, and it's it's it's kind of cool to see.
Is I think one of the things that I'm always
kind of jealous of you and the team at Rock
Real team Att is you guys get to show people
homes and every home is unique and they've got unique features,
(04:49):
even if they're brand spanking new, there's they're all a
little bit different houses that are there that have had
folks live in them. There's different features added and upgrades made.
You guys get get a chance to kind of to
show off those things and accentuate some of those things.
But those things also affect a property value, and appraisers
also take those things into consideration. What about like when
(05:11):
we think about this, like the baseline for it, I
hear about this word like comps or comparables. What are
they talking about there? In the praisal words.
Speaker 2 (05:17):
Sure, yeah.
Speaker 3 (05:18):
In general, an appraiser is going to obviously look at
all the facts. They're going to look at how much
land it has, the size of it, the age of
the home, the condition of the home. You know, how
many bathrooms, how many bedrooms, how big is the garage, right,
and then you know, try to come up with a
professional opinion of price. Right, so you know, the realtor
(05:41):
can give an idea of what they think home is worth,
but the appraisal appraiser is that's their job is to
actually identify an exact number that they're they're in their
professional opinion what the home is worth. So they will
take that it will compare it to homes that have
previously sold and sometimesclude some active listings, but for the
most part they're looking at sold listings and they want
(06:04):
to have that really tight radius, you know, two to
three mile radius, fairly recent so they don't want to
compare something and sold twenty twenty one. You know, you'd
want it to be probably sold in the last three
to six months, and then they're going to make some
adjustments and figure out what the homes value is.
Speaker 1 (06:19):
Is that number firm let's say For example, I find
a house and I'm absolutely in love with it. Of
course my lender wants to get an appraisal. Maybe the
appraisal comes in a little bit lower than expected, and maybe,
I mean, nobody's perfect. And obviously an appraisal is really
an estimate based on their understanding, their knowledge, and appraisers
do fantastic work. But is that something Sometimes you can say, well,
(06:42):
maybe something was overlooked or maybe you know, like is
that concrete, Like once an appraisal comes through, is it
locked at that appraised price?
Speaker 2 (06:50):
Or you know, there are some options.
Speaker 3 (06:51):
For disputing it where you can give examples and say, hey,
what about these comparables? Right, It's it's kind of rare,
and it depends the loan type. But yeah, I have
had appraisers come from out of state and end up
blowing up a deal because they had no idea what
they were talking about.
Speaker 4 (07:07):
So that can happen.
Speaker 3 (07:09):
So that's why it's important to work with a local
lender that has a board a group of appraisers that
he trusts because he knows that they're very experienced in
the local market.
Speaker 1 (07:19):
And for folks that are wondering the appraiser is hired
and works for the lending and they're not. They're not
somebody that as a potential buyer or as a potential
seller I'm involved in. It's it's the bank or the
lending institution that would be.
Speaker 3 (07:35):
Yeah, with a recent financing rule changes, you know, I
think it was an O nine. I believe it was
related to Dodd Frank has to be an independent company, right,
but you know, it can still have a relationship with
the lender if you will, right.
Speaker 1 (07:51):
So It's been a long time since I've had we
had our appraisal in our house, but I do remember,
and I don't know if this is universal, but the
appraiser also sent us as as potential buyers and ultimate
buyers like their report and it was kind it's to
this day, I still have it. It's kind of neat
to see a lot of pictures were taken, a lot
of notes were taken. It's interesting to see like what
(08:13):
the house looked like and what was there when you
moved in and kind of changed, like that. Is that
is that typical? Or is that is that something that
that's maybe a little bit unique.
Speaker 4 (08:21):
So, yeah, the appraisal is paid for essentially by the buyer.
Speaker 3 (08:25):
Right, so it is owned to buy the buyer. Okay,
all right, you have the choice of selling it to
the cellar, but are sending that to the cellar. But
sometimes when that comes in much higher value, you don't
want to sell it. They know that, right, Yeah, so yeah,
the you know, it's neat. I always keep all the
appraisal reports. It's neat to look in there and see
how they did their math and how they you know,
(08:46):
added some value for the finished basement, reduced some value
for the size of the bedrooms, and you can see
all that.
Speaker 1 (08:51):
And it also helps too with calculating. You know, when
you start looking towards you know, you do buy the house,
what's your insurance going to be? Those type of things
like having some type of number that things are based
off can really help you do those calculations for when
you do actually buy the home.
Speaker 2 (09:05):
Yeah.
Speaker 3 (09:05):
Absolutely. And you know, when you're ensuring a property, you
also want to make sure that you're ensuring it sometimes
for replacement value, sometimes for cash value depending on what
you're doing there. And replacement value it means, hey, how
much is this going to cost brand new?
Speaker 4 (09:18):
Yeah, So it's two big differences there.
Speaker 1 (09:21):
So if you're a viewer of the Antiques Roadshow. You're
familiar with both of those, all of those terms quite so.
Fantastic programming. By the way, speaking of fantastic programming, hanging
out this morning with Matt Heyman of Rockrealty Online Rockwisconsin
dot com. That's Rock Rock Wisconsin dot com. There's top
number six oh eight six seven three fifty four hundred.
That's six oh eight six seven three fifty four hundred.
(09:43):
I mentioned the website Rockwisconsin dot com. They've also got
a complimentary app that goes along with their website. If
you've got an Apple or an Android, I think everybody's
got one over the other. If you head on over
to MLS dot rocks slash app, that's MLS dot rocks
slash app, you can downlo load the Rock Realty app
on your smartphone and have all the convenience of Rock
(10:04):
Wisconsin and a really handy dandy app. Again that available
to you at MLS dot rockslash Apps. We're going to
continue our converse app sing Dealer. Going to your conversation
with Matt, I will talk a little bit about so
you get the appraisal process, where does that apply, and
things like VA loans and some of the FAHA loans. Obviously,
appraisals come into play pretty significantly in those areas. We'll
(10:24):
talk with Matt about that and so much more as
Ask the Experts with Rockrealty continues right here on thirteen
ten Double U I B A eight forty eight thirteen ten,
Double U I B A and Ask the Experts brought
you by Rockrealty Online. Rock Wisconsin dot Com. That's r
O c K Wisconsin dot com. Rock Wisconsin dot Com.
Great website for you.
Speaker 2 (10:44):
Of course, you.
Speaker 1 (10:44):
Can learn more about Rock wiscons Rockrealty at rock Wisconsin
dot com. Also check out listing. Speaking of listings, also
rocklistings dot Com. That's rocklistings dot Com. And Matt, let's
talk about one of the really cool features that you
guys have off that you are offering to your clients
at Rock Realty and the details they can get at
(11:05):
rocklistings dot Com.
Speaker 4 (11:06):
You've got a great deal with tso don't you. Yeah,
Totally spaced out.
Speaker 3 (11:11):
It's a portable storage company and we've partnered with them,
and you can go to rocklistings dot com to see
how you can get that included with your next purchase
or sale. And we've had some really good feedback.
Speaker 2 (11:23):
Yeah, I just love it.
Speaker 1 (11:24):
It is a great feature you think about about getting
your house ready for staging or of course getting ready
to move having they're really nice looking storage units that
they bring to your property. You can fill them up
at your leisure and then when they're full, they come
pick them up. They can either take them to your
new place or hold them in storage for a time.
It's a really really cool program. And of course all
(11:44):
the details available at rocklistings dot com. That's rocklistings dot
com And Matt we've been talking about appraisals and what
they're used for and h and kind of what goes
into an appraisal. Some loans are are more stringent as
far as what they expect from an appraisal and an appraiser.
(12:05):
Others are probably a little bit more lenient, I know,
anything having to do with the government's involved.
Speaker 2 (12:11):
In some way.
Speaker 3 (12:11):
That's exactly how I was going to describe it.
Speaker 2 (12:15):
We're on the same bait.
Speaker 1 (12:16):
They're going to be very very you know, kind of
rigid about what they're looking for. And VA Loan, which
is an amazing program for folks that have served our
nation and it's a great opportunity for those folks to
get into a home. But there are some requirements when
it comes to appraisals and some other things that folks
need to need to understand, aren't there.
Speaker 2 (12:35):
Yeah.
Speaker 3 (12:36):
Absolutely, And you know, in general normal conventional financing or
other types of local loans, the appraisal has nothing to
do with condition per se. I mean, it'll have a
little but it's mostly just about valuation. But when you
get into government loans that you know give you benefits, right,
like a VA loan you can do no money down
and faha loan you can do just three and a
(12:58):
half percent down. When you get into these government loans,
they actually also have some condition stipulation.
Speaker 4 (13:05):
So I would say the VA is a.
Speaker 3 (13:07):
Slightly more stringent, but they're both very similar as far
as what they're looking for. So things like safety and
you know, you know, integrity of this structure are important.
So yeah, we've got a few items on here that
we can go through.
Speaker 1 (13:25):
Yeah, and so it's kind of starting off with that,
with that safe access thing is and that's something you
may not always think about, but I spend enough time
up My wife is from the Spooner area, and they
don't really have great planners. Nothing against fine folks of Spooner,
but over time, like like somebody will own a lot
and it'll be completely landlocked and you'll have to have
some kind of easement and other things. And that's not
(13:47):
universal up there or not uncommon down here either, but
you really have to have as part of like the VA,
you have to have an actual road that connects.
Speaker 3 (13:56):
That's that's one thing I don't think about. Yeah, yeah,
you need say of access, legal access year round, whether
it's a public or private road.
Speaker 1 (14:04):
So what about as far as the house itself? And
this is an interesting part, is uh you would think, well, yeah,
of course, but making sure that that that building is
sound is definitely a requirement for both both loan programs.
Speaker 2 (14:20):
Isn't it. Yeah, I would say that.
Speaker 3 (14:22):
You know, they call it structural integrity, but we're talking
about you know, the found foundation for sure, rough leaks,
framing problems. You know, if you see some leaking cracks
and the concrete in the basement, then that might be
an issue, right. Uh. You know, they also have some
uh they still have some stipulations for lead based paint
as well. That's a that's a red flag. So we've
had many agents going out to properties and painting last
(14:45):
minute to make sure that the loan can close.
Speaker 1 (14:46):
Cover make sure it covers all the bases there and
speaking of covering all the bases utilities, and I know
for it's it's interesting because I think of a venor
and you think of somebody if if there's anybody that
can handle maintenance or a water heater or those type
of replacements or a furnace, those would be the type
of folks that can do it. But they are pretty
(15:07):
on both of these, whether it's the VA or the
f h A. They do want to make sure that
the house is in good mechanical working order.
Speaker 2 (15:15):
Yeah.
Speaker 3 (15:15):
Yeah, it's mostly about safety and you know, precaution, making
sure that you know, people aren't getting overheated or freezing
in the winter, right, and so the mechanical systems do
you know, have to.
Speaker 2 (15:25):
Work on both of those roofs.
Speaker 1 (15:27):
And I'm going to tell everybody something this is this
is an important conversation to have roof condition any house
you're buying. By the way, I think is that is
that kind of like a universal thing for folks when
they're buying home. They want to get a good look
at that roof.
Speaker 3 (15:40):
Some people forget okay, right, I'd say in general, you know,
agents are used to kind of glancing up before they
get too close to the house, right because you've gotta
gotta have a good angle of it. And you know,
for faha va, I mean, they're looking for at least
three plus years of life in the in the roof,
making sure that it's not leaking, you know, causing any mold.
And so that's one of the things that the FHA
(16:01):
appraiser will we'll look at. And those those government loan
appraisers actually have to get trained specifically for these things.
Speaker 1 (16:08):
And they know and they know exactly what to be
looking for. And a lot of this stuff too, is
I mean, is pretty I mean, I don't want people
to think that like it's a high bar is I
think as folks are hearing, that's kind of like, okay,
these are these are all things that that to be
you know, quite frank, if you're looking to buy a
house in general, unless you're a handy person, you're probably
(16:28):
looking for you know, you want to make sure that
that lead paint, the abatement and all that stuff's been handled.
You want to make sure that the furnace works, the
roof is in good condition. Another area too, like living standards,
and and again it's for other other mortgage options, other
loan options. If it works for you and it works
for your bank, it's totally fine. Now, the f h
A and the VA say, well, there's got to be
(16:50):
kind of a minimum standard to the structure, don't they.
Speaker 3 (16:53):
Yeah, yeah, I mean you don't. They don't want just
people finishing off a porch and not having heating and cooling,
you know, not having egress things like that, and calling
it a bedroom. So yeah, they're they're looking into living
standard things that just to make sure that it's that
whole safety thing.
Speaker 1 (17:08):
And as you mentioned earlier, really really favorable rates and
and uh and I think down payments are very very
reasonable as well with these and certainly if you're if
you're a veteran, as we of course are looking towards
moorial day and other things. Definitely something to explore. F
h A is is available for a lot of folks
out there as well, and can be a really great
(17:29):
opportunity for folks that may not think they can afford
a home to get into a home.
Speaker 3 (17:32):
Yeah, yeah, I mean just a couple other things would be,
you know, just making sure it doesn't have noob and.
Speaker 2 (17:37):
Tube as such.
Speaker 3 (17:38):
But for the most part, I would say that f
h A and v A, if you're able to qualify
for those, they're they're fantastic programs. And you know, a
real estate agent should be able to kind of identify
whether or not a home might be in questionable condition
to qualify.
Speaker 2 (17:52):
Does USDA still do a rural option as well?
Speaker 3 (17:55):
Do something they do and it's still available, and you
know in the listening area if you will right. You
just used to be I could qualify for things like
you know Stoton and Ederton, and but now when you
look on the map, those two have grown quite a
bit and now they're kind of pushing the boundary.
Speaker 4 (18:10):
You got to get a little further out.
Speaker 3 (18:11):
Yeah, if you don't now it's almost if you don't
see corn, it doesn't count.
Speaker 1 (18:15):
One of the great things about working with the great
agents at Rock Realty is they can let you know
things that are available to you, and of course cater
and design your home search. And of course you're listing
as well. Obviously, if you've got a listing, if it
is if it's qualifies for any of these programs. Putting
that in there really entices more buyers as well. So
you give things that entice buyers. I think the biggest
(18:36):
thing we talk about curb appeal and this week's featured
listening just an absolutely gorgeous house and a beautiful, beautiful
neighborhood right at twenty two South Garfield in Janesville. And Matt,
we didn't mention the garage, which is important, as you know,
a couple of guys, we should have cued in on
this right away.
Speaker 4 (18:54):
And it's this cute little carriage looking garage.
Speaker 3 (18:56):
I mean, it's awesome. It just matches the character of
a home. Yeah, it's got.
Speaker 4 (19:02):
The small little window above it.
Speaker 3 (19:03):
Thats just Yeah, if even if you're not looking in Jamesville, guys,
you should just take a look at twenty two South
Garfield Avenue. It's just such a fun one just to
look through the pictures it is.
Speaker 1 (19:13):
We've had a lot of funs kind of paging through
the other Tae Jamesville. That is right in Janesville. Yeah,
twenty two South Garfield Street in Janesville. Get more details.
Rock Wisconsin dot com. That's our Ock Wisconsin dot com.
Even better pickup phone make an appointment to show the house.
See the house with Lindsay. Lindsay's number six oh eight
nine three to one seventy eight sixty three.
Speaker 2 (19:32):
That's six oh eight.
Speaker 1 (19:33):
Nine three one seventy eight sixty three, say Lindsey, I
really want to see this house at twenty two South Garfield,
right in Janesville again in a beautiful, beautiful neighborhood. Speaking
of checking out beautiful houses, great data, head on over
the website rock Wisconsin dot com. That's our ock Wisconsin
dot com. Learn all about Rockrealty. Check out those listings
there as well. Matt, it's always fun hanging out with
(19:55):
my friend. You enjoyed this fantastic day you as will say.
And again that website Rock Wisconsin dot com. Vicky McKenna
has your chance to win one thousand dollars. Next right
here thirteen ten WIBA
Joining me in studio this morning is Matt Heyman of
Rock Realty.
Speaker 2 (00:03):
Matt, how you been. Oh, I've been good. I've been good.
Speaker 3 (00:05):
Enjoying this rainy day.
Speaker 2 (00:06):
Yeah, I think we needed some rain.
Speaker 3 (00:10):
Yeah, I did notice the grass was getting a little discolored.
Speaker 2 (00:13):
Yeah, the ground was really solid.
Speaker 1 (00:16):
So it's good for all, good for everyone to get
a little bit of rain. And we've got a great
conversation this week. We're going to be talking about understanding
the appraisal process and different options as well that you
would apply with your your appraisal. They're going to need them,
whether it's like a FAHA or VA. Talk about some
of those loan programs in just a moment with Matt.
But first, of course, we always do a featured listing
(00:38):
in this week, Matt, you brought a palace.
Speaker 2 (00:40):
You brought for.
Speaker 1 (00:41):
Folks that have spent any time in Janesville, they know this.
There is a couple of really historic neighborhoods with these
just amazing homes that have been so well taken care
of and great neighborhoods. And this week's featured listing is
a beautiful home in one of those very neighborhoods. Let's
talk about this, uh, this house on Garfield Street in Janesville.
Speaker 3 (01:05):
Yeah, it's in that Jefferson Avenue Historical district. Just a
magnificent like colonial that's been really well preserved as awesome
curb appeal, huge home, twenty eight hundred square feet and
you know you're sitting with a three bedroom, two and
a half bath over a third acre lot, just about
(01:27):
everything you'd want. And something like this, you know.
Speaker 1 (01:30):
It's and it's as you look at it too, it's
it could fit in like in like Washington, d C.
Speaker 2 (01:35):
I mean, it's like one of those kind of.
Speaker 1 (01:36):
Nice yeah, the styling and when we talk about houses
like the houses like this don't go on the market
all that often. These are the type of homes like
this house. I don't know the history of it, but
I'm gonna guess whoever owns it or owned it previously
probably had it. It may have been a generational type thing.
These are like those kind of houses that that people
(01:57):
just hold on to. And what a great opportunity to
have something like that.
Speaker 2 (02:01):
Yeah, exactly.
Speaker 3 (02:02):
And it's an area of people kind of are waiting
to move into. You know that it's you know, it's
not for everybody. But for those that are looking for,
you know, a colonial with just a ton of character.
I mean, this thing has three different woodburning fireplaces, like
how often do you say that? Exactly, sunroom, formal dining room,
(02:23):
it's just just really tastefully updated kitchen. Just just an
awesome home. And it's located at to two South Garfield
Avenue in Janesville, currently listed for five hundred and nine
thousand dollars.
Speaker 2 (02:36):
Three bedroom, two and a half bath.
Speaker 1 (02:37):
Today's day to call Lindsay if you are looking for
a really just a beautiful home, kind of a little
a statement piece, something that I guarantee, if there's something
you see yourself in, You'll be talking with your friends
and family for years about the reason why you bought
this house, because it isn't showing it off. You'll be
doing Christmas and the holidays there because it is.
Speaker 2 (02:56):
A beautiful home.
Speaker 1 (02:57):
Give Lindsay a call this morning six of eight nine three,
one seventy eight sixty three. That's six oh eight nine three,
one seventy eight sixty three to talk to Lindsey about
the showing for this beautiful home on Garfield Avenue.
Speaker 2 (03:09):
Again.
Speaker 1 (03:10):
You also check it out rock Wisconsin dot com. That's
Orock Wisconsin dot com. We've only scratched the surface on
some of the really cool features of home. So we'll
talk a little bit more about this week's featured listing
a little bit later on the program. This week, though,
we're going to talk a little bit about the appraisal process.
And uh, kind of sounds straightforward, and then you start
(03:30):
getting into it and you're like, oh, this is an
interesting There's a little bit more to it than just
simply going, Ah, that house about three hundred thousand, I
write a thing out there, you go. A lot of
work goes into it. Let's talk about a little bit
about the appraisal process and why you need an appraisal
if you're buying a home with a mortgage.
Speaker 3 (03:48):
Yeah, and sometimes it gets confused with the assessment.
Speaker 2 (03:51):
Oh yes, right, Yes.
Speaker 3 (03:52):
The assessment's just something that you know, when the local
municipality your town or city sends out somebody to try
to get evaluation kind.
Speaker 2 (04:00):
Of a just tax design you.
Speaker 4 (04:02):
Yes, the appraisal offer, that's that's.
Speaker 3 (04:04):
For the lender, right for the most part. You know,
you can order your own appraisal if you're offering in cash,
just to kind of get that comfort level that you're
not overpaying. But in general, every lender is going to
require an appraisal. So after you have a home under contract,
at that point, the buyer's lender will send out an
appraisal or appraiser to go take a get evaluation of
(04:27):
the property.
Speaker 1 (04:28):
Start learning terms like loan to value and some other
other terms as well. When you work through that, uh,
that process, and it's it's it's kind of cool to see.
Is I think one of the things that I'm always
kind of jealous of you and the team at Rock
Real team Att is you guys get to show people
homes and every home is unique and they've got unique features,
(04:49):
even if they're brand spanking new, there's they're all a
little bit different houses that are there that have had
folks live in them. There's different features added and upgrades made.
You guys get get a chance to kind of to
show off those things and accentuate some of those things.
But those things also affect a property value, and appraisers
also take those things into consideration. What about like when
(05:11):
we think about this, like the baseline for it, I
hear about this word like comps or comparables. What are
they talking about there? In the praisal words.
Speaker 2 (05:17):
Sure, yeah.
Speaker 3 (05:18):
In general, an appraiser is going to obviously look at
all the facts. They're going to look at how much
land it has, the size of it, the age of
the home, the condition of the home. You know, how
many bathrooms, how many bedrooms, how big is the garage, right,
and then you know, try to come up with a
professional opinion of price. Right, so you know, the realtor
(05:41):
can give an idea of what they think home is worth,
but the appraisal appraiser is that's their job is to
actually identify an exact number that they're they're in their
professional opinion what the home is worth. So they will
take that it will compare it to homes that have
previously sold and sometimesclude some active listings, but for the
most part they're looking at sold listings and they want
(06:04):
to have that really tight radius, you know, two to
three mile radius, fairly recent so they don't want to
compare something and sold twenty twenty one. You know, you'd
want it to be probably sold in the last three
to six months, and then they're going to make some
adjustments and figure out what the homes value is.
Speaker 1 (06:19):
Is that number firm let's say For example, I find
a house and I'm absolutely in love with it. Of
course my lender wants to get an appraisal. Maybe the
appraisal comes in a little bit lower than expected, and maybe,
I mean, nobody's perfect. And obviously an appraisal is really
an estimate based on their understanding, their knowledge, and appraisers
do fantastic work. But is that something Sometimes you can say, well,
(06:42):
maybe something was overlooked or maybe you know, like is
that concrete, Like once an appraisal comes through, is it
locked at that appraised price?
Speaker 2 (06:50):
Or you know, there are some options.
Speaker 3 (06:51):
For disputing it where you can give examples and say, hey,
what about these comparables? Right, It's it's kind of rare,
and it depends the loan type. But yeah, I have
had appraisers come from out of state and end up
blowing up a deal because they had no idea what
they were talking about.
Speaker 4 (07:07):
So that can happen.
Speaker 3 (07:09):
So that's why it's important to work with a local
lender that has a board a group of appraisers that
he trusts because he knows that they're very experienced in
the local market.
Speaker 1 (07:19):
And for folks that are wondering the appraiser is hired
and works for the lending and they're not. They're not
somebody that as a potential buyer or as a potential
seller I'm involved in. It's it's the bank or the
lending institution that would be.
Speaker 3 (07:35):
Yeah, with a recent financing rule changes, you know, I
think it was an O nine. I believe it was
related to Dodd Frank has to be an independent company, right,
but you know, it can still have a relationship with
the lender if you will, right.
Speaker 1 (07:51):
So It's been a long time since I've had we
had our appraisal in our house, but I do remember,
and I don't know if this is universal, but the
appraiser also sent us as as potential buyers and ultimate
buyers like their report and it was kind it's to
this day, I still have it. It's kind of neat
to see a lot of pictures were taken, a lot
of notes were taken. It's interesting to see like what
(08:13):
the house looked like and what was there when you
moved in and kind of changed, like that. Is that
is that typical? Or is that is that something that
that's maybe a little bit unique.
Speaker 4 (08:21):
So, yeah, the appraisal is paid for essentially by the buyer.
Speaker 3 (08:25):
Right, so it is owned to buy the buyer. Okay,
all right, you have the choice of selling it to
the cellar, but are sending that to the cellar. But
sometimes when that comes in much higher value, you don't
want to sell it. They know that, right, Yeah, so yeah,
the you know, it's neat. I always keep all the
appraisal reports. It's neat to look in there and see
how they did their math and how they you know,
(08:46):
added some value for the finished basement, reduced some value
for the size of the bedrooms, and you can see
all that.
Speaker 1 (08:51):
And it also helps too with calculating. You know, when
you start looking towards you know, you do buy the house,
what's your insurance going to be? Those type of things
like having some type of number that things are based
off can really help you do those calculations for when
you do actually buy the home.
Speaker 2 (09:05):
Yeah.
Speaker 3 (09:05):
Absolutely. And you know, when you're ensuring a property, you
also want to make sure that you're ensuring it sometimes
for replacement value, sometimes for cash value depending on what
you're doing there. And replacement value it means, hey, how
much is this going to cost brand new?
Speaker 4 (09:18):
Yeah, So it's two big differences there.
Speaker 1 (09:21):
So if you're a viewer of the Antiques Roadshow. You're
familiar with both of those, all of those terms quite so.
Fantastic programming. By the way, speaking of fantastic programming, hanging
out this morning with Matt Heyman of Rockrealty Online Rockwisconsin
dot com. That's Rock Rock Wisconsin dot com. There's top
number six oh eight six seven three fifty four hundred.
That's six oh eight six seven three fifty four hundred.
(09:43):
I mentioned the website Rockwisconsin dot com. They've also got
a complimentary app that goes along with their website. If
you've got an Apple or an Android, I think everybody's
got one over the other. If you head on over
to MLS dot rocks slash app, that's MLS dot rocks
slash app, you can downlo load the Rock Realty app
on your smartphone and have all the convenience of Rock
(10:04):
Wisconsin and a really handy dandy app. Again that available
to you at MLS dot rockslash Apps. We're going to
continue our converse app sing Dealer. Going to your conversation
with Matt, I will talk a little bit about so
you get the appraisal process, where does that apply, and
things like VA loans and some of the FAHA loans. Obviously,
appraisals come into play pretty significantly in those areas. We'll
(10:24):
talk with Matt about that and so much more as
Ask the Experts with Rockrealty continues right here on thirteen
ten Double U I B A eight forty eight thirteen ten,
Double U I B A and Ask the Experts brought
you by Rockrealty Online. Rock Wisconsin dot Com. That's r
O c K Wisconsin dot com. Rock Wisconsin dot Com.
Great website for you.
Speaker 2 (10:44):
Of course, you.
Speaker 1 (10:44):
Can learn more about Rock wiscons Rockrealty at rock Wisconsin
dot com. Also check out listing. Speaking of listings, also
rocklistings dot Com. That's rocklistings dot Com. And Matt, let's
talk about one of the really cool features that you
guys have off that you are offering to your clients
at Rock Realty and the details they can get at
(11:05):
rocklistings dot Com.
Speaker 4 (11:06):
You've got a great deal with tso don't you. Yeah,
Totally spaced out.
Speaker 3 (11:11):
It's a portable storage company and we've partnered with them,
and you can go to rocklistings dot com to see
how you can get that included with your next purchase
or sale. And we've had some really good feedback.
Speaker 2 (11:23):
Yeah, I just love it.
Speaker 1 (11:24):
It is a great feature you think about about getting
your house ready for staging or of course getting ready
to move having they're really nice looking storage units that
they bring to your property. You can fill them up
at your leisure and then when they're full, they come
pick them up. They can either take them to your
new place or hold them in storage for a time.
It's a really really cool program. And of course all
(11:44):
the details available at rocklistings dot com. That's rocklistings dot
com And Matt we've been talking about appraisals and what
they're used for and h and kind of what goes
into an appraisal. Some loans are are more stringent as
far as what they expect from an appraisal and an appraiser.
(12:05):
Others are probably a little bit more lenient, I know,
anything having to do with the government's involved.
Speaker 2 (12:11):
In some way.
Speaker 3 (12:11):
That's exactly how I was going to describe it.
Speaker 2 (12:15):
We're on the same bait.
Speaker 1 (12:16):
They're going to be very very you know, kind of
rigid about what they're looking for. And VA Loan, which
is an amazing program for folks that have served our
nation and it's a great opportunity for those folks to
get into a home. But there are some requirements when
it comes to appraisals and some other things that folks
need to need to understand, aren't there.
Speaker 2 (12:35):
Yeah.
Speaker 3 (12:36):
Absolutely, And you know, in general normal conventional financing or
other types of local loans, the appraisal has nothing to
do with condition per se. I mean, it'll have a
little but it's mostly just about valuation. But when you
get into government loans that you know give you benefits, right,
like a VA loan you can do no money down
and faha loan you can do just three and a
(12:58):
half percent down. When you get into these government loans,
they actually also have some condition stipulation.
Speaker 4 (13:05):
So I would say the VA is a.
Speaker 3 (13:07):
Slightly more stringent, but they're both very similar as far
as what they're looking for. So things like safety and
you know, you know, integrity of this structure are important.
So yeah, we've got a few items on here that
we can go through.
Speaker 1 (13:25):
Yeah, and so it's kind of starting off with that,
with that safe access thing is and that's something you
may not always think about, but I spend enough time
up My wife is from the Spooner area, and they
don't really have great planners. Nothing against fine folks of Spooner,
but over time, like like somebody will own a lot
and it'll be completely landlocked and you'll have to have
some kind of easement and other things. And that's not
(13:47):
universal up there or not uncommon down here either, but
you really have to have as part of like the VA,
you have to have an actual road that connects.
Speaker 3 (13:56):
That's that's one thing I don't think about. Yeah, yeah,
you need say of access, legal access year round, whether
it's a public or private road.
Speaker 1 (14:04):
So what about as far as the house itself? And
this is an interesting part, is uh you would think, well, yeah,
of course, but making sure that that that building is
sound is definitely a requirement for both both loan programs.
Speaker 2 (14:20):
Isn't it. Yeah, I would say that.
Speaker 3 (14:22):
You know, they call it structural integrity, but we're talking
about you know, the found foundation for sure, rough leaks,
framing problems. You know, if you see some leaking cracks
and the concrete in the basement, then that might be
an issue, right. Uh. You know, they also have some
uh they still have some stipulations for lead based paint
as well. That's a that's a red flag. So we've
had many agents going out to properties and painting last
(14:45):
minute to make sure that the loan can close.
Speaker 1 (14:46):
Cover make sure it covers all the bases there and
speaking of covering all the bases utilities, and I know
for it's it's interesting because I think of a venor
and you think of somebody if if there's anybody that
can handle maintenance or a water heater or those type
of replacements or a furnace, those would be the type
of folks that can do it. But they are pretty
(15:07):
on both of these, whether it's the VA or the
f h A. They do want to make sure that
the house is in good mechanical working order.
Speaker 2 (15:15):
Yeah.
Speaker 3 (15:15):
Yeah, it's mostly about safety and you know, precaution, making
sure that you know, people aren't getting overheated or freezing
in the winter, right, and so the mechanical systems do
you know, have to.
Speaker 2 (15:25):
Work on both of those roofs.
Speaker 1 (15:27):
And I'm going to tell everybody something this is this
is an important conversation to have roof condition any house
you're buying. By the way, I think is that is
that kind of like a universal thing for folks when
they're buying home. They want to get a good look
at that roof.
Speaker 3 (15:40):
Some people forget okay, right, I'd say in general, you know,
agents are used to kind of glancing up before they
get too close to the house, right because you've gotta
gotta have a good angle of it. And you know,
for faha va, I mean, they're looking for at least
three plus years of life in the in the roof,
making sure that it's not leaking, you know, causing any mold.
And so that's one of the things that the FHA
(16:01):
appraiser will we'll look at. And those those government loan
appraisers actually have to get trained specifically for these things.
Speaker 1 (16:08):
And they know and they know exactly what to be
looking for. And a lot of this stuff too, is
I mean, is pretty I mean, I don't want people
to think that like it's a high bar is I
think as folks are hearing, that's kind of like, okay,
these are these are all things that that to be
you know, quite frank, if you're looking to buy a
house in general, unless you're a handy person, you're probably
(16:28):
looking for you know, you want to make sure that
that lead paint, the abatement and all that stuff's been handled.
You want to make sure that the furnace works, the
roof is in good condition. Another area too, like living standards,
and and again it's for other other mortgage options, other
loan options. If it works for you and it works
for your bank, it's totally fine. Now, the f h
A and the VA say, well, there's got to be
(16:50):
kind of a minimum standard to the structure, don't they.
Speaker 3 (16:53):
Yeah, yeah, I mean you don't. They don't want just
people finishing off a porch and not having heating and cooling,
you know, not having egress things like that, and calling
it a bedroom. So yeah, they're they're looking into living
standard things that just to make sure that it's that
whole safety thing.
Speaker 1 (17:08):
And as you mentioned earlier, really really favorable rates and
and uh and I think down payments are very very
reasonable as well with these and certainly if you're if
you're a veteran, as we of course are looking towards
moorial day and other things. Definitely something to explore. F
h A is is available for a lot of folks
out there as well, and can be a really great
(17:29):
opportunity for folks that may not think they can afford
a home to get into a home.
Speaker 3 (17:32):
Yeah, yeah, I mean just a couple other things would be,
you know, just making sure it doesn't have noob and.
Speaker 2 (17:37):
Tube as such.
Speaker 3 (17:38):
But for the most part, I would say that f
h A and v A, if you're able to qualify
for those, they're they're fantastic programs. And you know, a
real estate agent should be able to kind of identify
whether or not a home might be in questionable condition
to qualify.
Speaker 2 (17:52):
Does USDA still do a rural option as well?
Speaker 3 (17:55):
Do something they do and it's still available, and you
know in the listening area if you will right. You
just used to be I could qualify for things like
you know Stoton and Ederton, and but now when you
look on the map, those two have grown quite a
bit and now they're kind of pushing the boundary.
Speaker 4 (18:10):
You got to get a little further out.
Speaker 3 (18:11):
Yeah, if you don't now it's almost if you don't
see corn, it doesn't count.
Speaker 1 (18:15):
One of the great things about working with the great
agents at Rock Realty is they can let you know
things that are available to you, and of course cater
and design your home search. And of course you're listing
as well. Obviously, if you've got a listing, if it
is if it's qualifies for any of these programs. Putting
that in there really entices more buyers as well. So
you give things that entice buyers. I think the biggest
(18:36):
thing we talk about curb appeal and this week's featured
listening just an absolutely gorgeous house and a beautiful, beautiful
neighborhood right at twenty two South Garfield in Janesville. And Matt,
we didn't mention the garage, which is important, as you know,
a couple of guys, we should have cued in on
this right away.
Speaker 4 (18:54):
And it's this cute little carriage looking garage.
Speaker 3 (18:56):
I mean, it's awesome. It just matches the character of
a home. Yeah, it's got.
Speaker 4 (19:02):
The small little window above it.
Speaker 3 (19:03):
Thats just Yeah, if even if you're not looking in Jamesville, guys,
you should just take a look at twenty two South
Garfield Avenue. It's just such a fun one just to
look through the pictures it is.
Speaker 1 (19:13):
We've had a lot of funs kind of paging through
the other Tae Jamesville. That is right in Janesville. Yeah,
twenty two South Garfield Street in Janesville. Get more details.
Rock Wisconsin dot com. That's our Ock Wisconsin dot com.
Even better pickup phone make an appointment to show the house.
See the house with Lindsay. Lindsay's number six oh eight
nine three to one seventy eight sixty three.
Speaker 2 (19:32):
That's six oh eight.
Speaker 1 (19:33):
Nine three one seventy eight sixty three, say Lindsey, I
really want to see this house at twenty two South Garfield,
right in Janesville again in a beautiful, beautiful neighborhood. Speaking
of checking out beautiful houses, great data, head on over
the website rock Wisconsin dot com. That's our ock Wisconsin
dot com. Learn all about Rockrealty. Check out those listings
there as well. Matt, it's always fun hanging out with
(19:55):
my friend. You enjoyed this fantastic day you as will say.
And again that website Rock Wisconsin dot com. Vicky McKenna
has your chance to win one thousand dollars. Next right
here thirteen ten WIBA
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