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Real Estate Tips
About Appraisals >Three Caballeros

When you buy a house or refinance your present home, your lender will ask you to pay for an appraisal to help ensure that the sales price and mortgage amount is consistent with the property's market value. The appraiser will look for "three caballeros" or three "comparables" -- homes that are very similar to the one you are buying -- and will make adjustments to reflect the differences between the properties.

Housing patterns tend to be homogenous, meaning that homes worth $300,000 are usually located in $300,000 neighborhoods. It is important for properties to be within the general pricing patterns of their neighborhoods because over-valued homes, even if they are exceptional, are sometimes difficult to sell at full market price.

This is not the only factor considered in determining the worth of a property, but it is an important one. The buyer or seller may view the property as a home or an investment, but lenders view it in a completely different way. To a lender, property means security in the event a borrower fails to repay a mortgage. Therefore, lenders must know real estate values in order to limit their risks.

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Real Estate Trivia
Q 
What is the earliest residential building that remains in Manhattan?

A 
Fraunces Tavern, built in 1719, is where George Washington delivered his Farewell Address to his officers in 1783.
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Nancy Clayton, REALTOR®, real estate agents and broker for Falmouth, Mashpee and Bourne Massachusetts home listings, property and land for sale - NUMBER1EXPERT(tm)

Nancy Clayton, CRS, ABR, CBR, SRES, e-PRO, RECS
RE/MAX Classic

205 Worcester Court
Falmouth, MA, 02540
508-548-6667
877-80 REMAX
Fax: 508-540-6832
nancyclayton@NUMBER1EXPERT.com

Whether looking for retirement or leisure properties in the Cape Cod area, Nancy Clayton is your neighborhood expert. Nancy offers you over 20 years of experience and enthusiasm in real estate. She is dedicated and educated to represent you in all of your real estate needs. Representing you and not houses is her specialty.

CRS ABR CBR SRES ePro wcr MLS Equal Housing REALTOR


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