Getting a bad home appraisal before selling is common. You can ask the bank for a new appraiser. The appraiser should know the local market. By: Ilyce Glink and Samuel Tamkin Q: I am in the middle of selling my …
Many people have problems with home appraisals today. There has been a reduced emphasis on local market knowledge by lenders. By: Ilyce Glink and Samuel Tamkin The housing crisis has left buyers, sellers and homeowners facing some difficult moments wondering whether …
When determining value of a commercial property, know the different methods available of how to value commercial property properly. Q: Our bank came in with an appraised value that is about one-third of what we originally borrowed from the bank …
A low appraisal can limit options for a homeowners trying to get a mortgage refinance. A low appraisal will prevent a homeowner from getting a mortgage. A low appraisal can reflect the loss of equity in the house and remove options available to refinance the home. Recent decline in housing values and the resulting low appraisals are contributing to the problems of strategic default and loan modifications.
A reader commented that buyers of real estate should obtain an independent appraisal of any real estate that wish to purchase. However, the cost of an appraisal may outweigh any benefit you may get out of the appraisal. There are other tools out there available to purchasers of real estate to determine whether home prices are declining or increasing. Good real estate brokers and agents have tools available at their disposal to determine where prices are in a certain neighborhood. If nothing has sold recently or if there is a rash of foreclosures, a good real estate agent that works a particular area may have a better feel for where prices are than an appraiser. The key is to find a good real estate agent that will look out for your interests.
If you apply to refinance your loan and get quoted terms, can you force the lender to abide by those terms? What if your property received a low appraisal? What if declining home values caused your home value to drop below what you owe on your current mortgage? And what if you decide not to go forward with the loan refinance, can you get your application money back?
Losing Earnest Money When An Appraisal Comes In Too Low
If you sign a contract to buy a home and the appraisal comes in too low, what should you do? Are you at risk of losing your earnest money or down payment on the home? How do you prevent getting yourself in a situation where your earnest money is at risk in a volatile real estate market? First, you should make sure you understand the homebuying process, read the purchase and sale agreement, and get help when you don’t understand something.
How can you know when the housing market is recovering? The housing market crisis has to do with supply and demand being out of whack. At the moment (in 2009), there are too many sellers and not enough buyers. Fixing supply and demand is key, but there are many factors that go into supply and demand. The Appraisal Institute recently put out some factors that affect supply and demand and residential real estate. Recognizing these trends will help you understand when the housing market is recovering.