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Before the crash, the real estate market thrived due to relatively low interest rates and good demand. Other factors eventually led to the crash including subprime mortgages, predatory lending, and questionable securitization by lenders, however, that is a topic for another day.
The lender then obtains an appraisal to make sure that the property they are lending on, which is the collateral for the loan, is worth what they are paying for it. The appraiser must make sure that they are providing an impartial valuation so that the marketvalue shown in the appraisal is as accurate as possible.
With so much at stake, a credible appraisal report with the appropriate comparable sales is key to determining the marketvalue of a property and protects the investment of the parties involved in the transaction. When choosing comparable sales, bracket the location or view . Location, location, location. 1 is location, No.
The purpose of this blog post is to lend some insight into what an agent should do and not do during the third stage. Most loans will fall under federal guidelines and use a definition for marketvalue found on the form report workhorse of the appraisal world—the Fannie Mae 1004 Form. 4) “Bracketing” of most major features. (No
For many different reasons, properties can come on the market in less-than-par condition. At some point it’s no longer “normal marketvalue minus cost to cure equals as-is value.” Appraisers sought to bracket the subject using three comparable sales.
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