The collapse of the economy began with a reality wind blowing against the sub-prime mortgage house of cards. We are all living with the results of over-aggressive lending practices and over active government intervention. The following article takes us through Get yourself prepared for knowing 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.
One criticism of traditional human evaluations is that they are not a "value-added" product, meaning that an evaluation report does not add any monetary value to a transaction in dollars and cents. But appraisals were never intended to add anything to a transaction in that way, any more than a regulation does. The value of the assessment lies deeper than the numbers on a closing statement.
Foreclosures: Some high-risk loans that have adjusted have gone into foreclosure. The other shoe, are the ones that will adjust over the next 24 months. As foreclosures escalate, home sales will increase - this does not indicate market conditions are improving, just that some buyers are picking up properties that banks and individuals are dumping on the market.
An appraiser has to cover all out of pocket expenses the same as any business person (education, health insurance, MLS fees, liability fees, business insurance, state fees - the list goes on). In addition a good appraiser may spend anywhere from 3 to 6 hours in preparation (looking for comparable, etc.), have a 45 minute or more drive time to location, 2 hours driving comparable and taking pictures and then another 1 -3 hours writing the report and then if the bank wants more info or kicks anything back they have to invest the time to answer questions, etc.
Also, is they get your request from another appraiser or one of these new rips off government created middlemen called AMCs - they may have to split the fee. These are all just the costs of doing business. So when someone stops by for 30 to 60 minutes with a tape measure know that it's the tip of the iceberg and you're getting a good deal.
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.
One criticism of traditional human evaluations is that they are not a "value-added" product, meaning that an evaluation report does not add any monetary value to a transaction in dollars and cents. But appraisals were never intended to add anything to a transaction in that way, any more than a regulation does. The value of the assessment lies deeper than the numbers on a closing statement.
Foreclosures: Some high-risk loans that have adjusted have gone into foreclosure. The other shoe, are the ones that will adjust over the next 24 months. As foreclosures escalate, home sales will increase - this does not indicate market conditions are improving, just that some buyers are picking up properties that banks and individuals are dumping on the market.
An appraiser has to cover all out of pocket expenses the same as any business person (education, health insurance, MLS fees, liability fees, business insurance, state fees - the list goes on). In addition a good appraiser may spend anywhere from 3 to 6 hours in preparation (looking for comparable, etc.), have a 45 minute or more drive time to location, 2 hours driving comparable and taking pictures and then another 1 -3 hours writing the report and then if the bank wants more info or kicks anything back they have to invest the time to answer questions, etc.
Also, is they get your request from another appraiser or one of these new rips off government created middlemen called AMCs - they may have to split the fee. These are all just the costs of doing business. So when someone stops by for 30 to 60 minutes with a tape measure know that it's the tip of the iceberg and you're getting a good deal.
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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