Are you in the place of "what happened" when it comes to your home, its value, and equity? Have you recently applied for a simple re-finance or buyers loan and been refused, even though you have no troubles financially? If so, you're not alone. While value is always relative, understanding the current market valuation process and how the lenders and the government work in today's real manor market can help you decipher what's going on. The following article penetrates through what happened and why you got turned down for a loan estate appraisals New York.
Banks: Follow the money, and it will always lead you to the culprit. In this case the banking industry. They overextended themselves through high-risk loan practices and then packaged the loans as products and sold them to other institutions - essentially spreading the infection. While overall loan rates remained low over the preceding three years with the dramatic rise in fuel costs in early 2008, credit became tighter, and these higher non-market based loan rates jumped as their entry level adjustable period ended.
The purpose of property valuation is to provide a current market-based value for a property in comparison to others in its immediate vicinity. So an appraisal is a time, location and geography specific. It is a comparative value - not an absolute. Second, real estate appraisals are broken into two broad categories - residential and commercial. For these papers, we will be discussing strictly residential appraisals.
The government decided that the best way to deal with this was to flood the banks that created the problem with money. Illogically they assumed that institutions that had not acted in their shareholders best interest would now suddenly change, even former Chairman Greenspan was amazed at the bank's duplicity. The Bank's did exactly as you would expect anyone in a tough financial place that got bailed out - they covered themselves.
Real estate appraisers are traditionally independent contractors/business people - no appraisals = no money. So while you are paying a relatively standard one-time fee (e. G. 400 dollars), they have to make sure they get as many appraisals in as they can to make any profit at all. How's that? After all, they've got your 400 dollars.
Consider an appraisal that estimates a value below the sale price of a home to be like a traffic ticket and the appraiser to be a policeman. Under ideal circumstances, a traffic cop does not write a single speeding ticket because people are driving within the speed limit. Human nature being what it is, it's a sure bet that if everyone knew that the local authorities had decided to remove the cops from the roads, a large percentage of drivers would speed up, accidents, injuries and fatalities would increase, and that sooner or later the police would be back.
Essentially, the top of the food chain (banks) got billions for bailouts and bonuses and at the bottom end, small business, fee-based independent appraisers got higher costs, reduced fees bewildering regulations and reduced business. It is estimated that tens of thousands of consumers have already been denied their opportunity to enjoy historically low rates. This is a classic example of the Law of Good Intentions - something is done in the right spirit that sadly backfires.
Appraisers: Real estate evaluators are conventionally approved by the state they operate in and judge within a given topography, so they advance over time a brilliant "feel" for market value. They are usually autonomous commercial folks who do assessments on a fee basis - no appraisals equal any money. Appraisal fees for regular homes can run from 200 to 400 dollars depending on the area and amount of work.
Banks: Follow the money, and it will always lead you to the culprit. In this case the banking industry. They overextended themselves through high-risk loan practices and then packaged the loans as products and sold them to other institutions - essentially spreading the infection. While overall loan rates remained low over the preceding three years with the dramatic rise in fuel costs in early 2008, credit became tighter, and these higher non-market based loan rates jumped as their entry level adjustable period ended.
The purpose of property valuation is to provide a current market-based value for a property in comparison to others in its immediate vicinity. So an appraisal is a time, location and geography specific. It is a comparative value - not an absolute. Second, real estate appraisals are broken into two broad categories - residential and commercial. For these papers, we will be discussing strictly residential appraisals.
The government decided that the best way to deal with this was to flood the banks that created the problem with money. Illogically they assumed that institutions that had not acted in their shareholders best interest would now suddenly change, even former Chairman Greenspan was amazed at the bank's duplicity. The Bank's did exactly as you would expect anyone in a tough financial place that got bailed out - they covered themselves.
Real estate appraisers are traditionally independent contractors/business people - no appraisals = no money. So while you are paying a relatively standard one-time fee (e. G. 400 dollars), they have to make sure they get as many appraisals in as they can to make any profit at all. How's that? After all, they've got your 400 dollars.
Consider an appraisal that estimates a value below the sale price of a home to be like a traffic ticket and the appraiser to be a policeman. Under ideal circumstances, a traffic cop does not write a single speeding ticket because people are driving within the speed limit. Human nature being what it is, it's a sure bet that if everyone knew that the local authorities had decided to remove the cops from the roads, a large percentage of drivers would speed up, accidents, injuries and fatalities would increase, and that sooner or later the police would be back.
Essentially, the top of the food chain (banks) got billions for bailouts and bonuses and at the bottom end, small business, fee-based independent appraisers got higher costs, reduced fees bewildering regulations and reduced business. It is estimated that tens of thousands of consumers have already been denied their opportunity to enjoy historically low rates. This is a classic example of the Law of Good Intentions - something is done in the right spirit that sadly backfires.
Appraisers: Real estate evaluators are conventionally approved by the state they operate in and judge within a given topography, so they advance over time a brilliant "feel" for market value. They are usually autonomous commercial folks who do assessments on a fee basis - no appraisals equal any money. Appraisal fees for regular homes can run from 200 to 400 dollars depending on the area and amount of work.
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