When obtaining a mortgage, the funding lender relies on the standardized valuation methods of an appraiser to assess a monetary value for the specific piece of real property on which a loan will be secured (e.g. a residence). The lender will then justify the loan amount (and other risk-based pricing) factors as a percentage of the appraised value of the property.[2]
Appraised values can also be made after a property sale. For example, home owners wishing to gain access to their increased equity in their home may obtain a mortgage valuation to prove its value has risen and thus justify increasing the amount of their mortgage. Also, the various states of Australia each have a Valuer-General's Department, which regularly assess land values in all municipalities and shires for the purpose of issuing property tax notices.
A low appraised value will affect a buyer's ability to purchase property, because the loan amount would seem too high with respect to its value. Unless the buyer can come up with the difference, the buyer will unlikely be able to qualify for the loan.
Appraisal fraudedit
Fraud in appraisal happens during both upturn and downturn markets. When a homeowner is looking to refinance their home, the appraiser is sometimes under pressure to overvalue the home to make the refinancing more attractive.[3]
appraised, value, appraised, value, united, states, mortgage, valuation, australia, pertains, assessed, value, real, property, opinion, qualified, appraiser, valuer, usually, qualification, risk, based, pricing, factor, related, issuance, mortgage, loans, fina. An appraised value United States or mortgage valuation Australia pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer It is usually a pre qualification amp risk based pricing factor related to the issuance of mortgage loans by a financial institution 1 Contents 1 Overview 2 Appraisal fraud 3 See also 4 ReferencesOverview editWhen obtaining a mortgage the funding lender relies on the standardized valuation methods of an appraiser to assess a monetary value for the specific piece of real property on which a loan will be secured e g a residence The lender will then justify the loan amount and other risk based pricing factors as a percentage of the appraised value of the property 2 Appraised values can also be made after a property sale For example home owners wishing to gain access to their increased equity in their home may obtain a mortgage valuation to prove its value has risen and thus justify increasing the amount of their mortgage Also the various states of Australia each have a Valuer General s Department which regularly assess land values in all municipalities and shires for the purpose of issuing property tax notices A low appraised value will affect a buyer s ability to purchase property because the loan amount would seem too high with respect to its value Unless the buyer can come up with the difference the buyer will unlikely be able to qualify for the loan Appraisal fraud editFraud in appraisal happens during both upturn and downturn markets When a homeowner is looking to refinance their home the appraiser is sometimes under pressure to overvalue the home to make the refinancing more attractive 3 See also editReal estate appraisalReferences edit Definition of appraised value Archived September 28 2007 at the Wayback Machine Fannie Mae Real Estate Appraisals Licensed and Certified Appraisers Appraisal fraud CNN Money Retrieved from https en wikipedia org w index php title Appraised value amp oldid 1170594785, wikipedia, wiki, book, books, library,
