What's the deal? (Ask Your Advocate).Q What does it mean when house has "failed to appraise appraise v. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or in certain cases the loss of value (or cost of replacement) due to damage. " when you're in the process of buying it or making an offer? --Via the Internet A That is not a term that is used. It may have been misquoted. An appraisal is an estimate of a homeowner's property value. The appraiser A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property. Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market , who is licensed by the state under regulations set by the federal government, assesses the fair market value of the property and is often dispatched by the mortgage lending institution Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in , which will structure the loan based on the evaluation. An appraisal can fail to meet the seller's expectations. For example, a homeowner may want to sell property for $400,000, only to have it appraised at $250,000. Although an appraisal can be subjective, it is based on comparative home prices in the geographic area. There have been cases where banks have refused to send appraisers out to certain neighborhoods. This is called redlining Identifying text that has been changed in a word processing document by displaying it in a special color, for example. It allows the original author of the text or other users to see ongoing revisions. The term comes from manual editing where a red pen is used to mark up the pages. , a discriminatory and illegal practice whereby lending institutions refuse to issue mortgages in certain areas. According to Matthew King II, owner of MK Capital Resources L.L.C., a mortgage brokerage company in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , a seller can challenge an appraisal. "They are more of an art than a science," he offers. "But if you are going to challenge an evaluation, you have to have supporting documentation of other sales in the neighborhood to support your claim. You do have the option to hold out for your asking price," he continues. "But banks and lending institutions will usually finance a loan based on what the property is worth. In such a case, the buyer would have to pay the difference out of pocket--which is very unlikely." Mail your consumer empowerment questions to Ask Your Advocate, BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to alleynes@blackenterprise.com |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion