Valuation? An assessment of what the common market will offer and offer for buying a home. It guarantees certain things - sensible marketing is already complete and reflects the state of the market prior to evaluation.
Without the basics being different for a specific stated reason, then the general assessment methodology is as follows:
Market analysis of similar homes is similar in terms of location, size, construction, placement, materials and design plus condition. Coming out of the epicenter (home location), you then look for the closest relevant actual sales volume or asking prices for homes that are not sold but are on the market and are available for purchase. In addition, it is necessary to analyze the selling prices for similar homes that have been sold in the last six months or so. When all this has been done, the data is used to evaluate the subject receiving benefits, both negative and positive, for each material difference.
This method of comparison is an inaccurate science. Indeed, I would describe housing estimates as an art, not a science. When politics, banking protectionism and potential pariah factors, such as the age and thoughts of the appraiser, are not at all surprising that most people in the UK are denied what a survey is, what an estimate is and what I need if I buy.
Some of the factors listed below can be helpful or troublesome in each case, as we often need to protect against our ignorance. However, I believe that the assessment industry lags far behind public awareness of what a simple assessment is.
So where does the confusion arise?
(1) This is not a poll. No Home Grade can be called a survey. A review is a detailed assessment of the risks affecting the condition and condition of the house, based on a reasonable comprehensive check of all components of the structure.
(2) No bid from a special buyer can be reflected, since this will be a special case and not a total market value.
(3) He assures that both the seller and the potential buyer act reasonably and prudently. However, this is not my own experience of over 35 years of work of sellers and buyers.
(4) special rules may apply. For example, if a house that needs to be appreciated is completely new, it is now determined that the cost of a new home loan is based on its value, as if the house was second-hand (and not new). This is the same principle as buying a car - theoretically, once you bought a car, it is not new and instantly costs less.
(5) Many developers (selling new homes) give you incentives to buy their products. Discount this month! Cash fees! Carpets and curtains included this month! No mortgage payments for a year! No purchase payment! You know what it is. The evaluator must have knowledge of such matters and ignore the limited benefit of such incentives over time. This means that a potential downgrade is about to land on your doorstep. This is a standard UK evaluation policy and procedure.
(6) Another theoretical problem is that the Loan Estimator evaluates for loan purposes: it does not evaluate YOU. This may seem strange, but if I bought a house and asked the Appraiser his opinion about "value for me", he would ask me why I buy. I can say that the house is located near the house of my parents, and this has a special meaning for me. In this example, I might be willing to pay a premium, something extra for market value. Such a definition will be called “special value for me” and is not a market one.
(7) Problems of analyzing market trends. The credit rating was prepared by the Appraiser, acting for the Credit Company, estimating the value of the property for loan purposes. If the Credit Company knows fact or perception, it does not matter that the values are about to fall, then the Employer's instructions to this Valuer will be careful: perhaps even to reduce the cost of most cases, to ensure that customers do not go into negative capital and, may be at risk of default on the mortgage. Thanks to this method, the Bank protects itself from its customers, and such business methods are a powerful resource that is a weapon. These market presses and companies can get out of balance. The global credit crisis showed us the perception and protectionism of banks and financial houses. The client always came to the account of the Bank's profit
(8) In theory, you can get different opinions about values based on the same valuation methods (see the Subsequent Comments), depending on whether your appraiser is a mortgage company appraiser or your own appraiser. or second hand).
In fact, such policies of the Credit Company may, in aggregate, actually influence the market value. Suppose you have a non-standard house shape with very few similar houses. The demand for your home can be very limited if there is a shortage of credit financing. All that is required is that Credit companies come together and agree not to borrow above, say, 50 percent of the estimate, or if your apartment is located in the lower five stores in the block, if your house is built in a certain way, etc. .
These things happened in the past. Financial regulators could not stop the tide of Bank Power and should accept some element of guilt for the consequences - Credit Crunch.
Summary? What do we need to remember in this less transparent world?
• Rating is not a survey.
• Some Estimates suggest that everything is different depending on your own circumstances.
• The company's credit rating policy may adversely affect the rating by smoothing the Appraiser.
• Never assume that because the Bank will provide you with a loan, the property will be in good condition.
• In cases where the change / discretion of the assessment can be carried out almost every time when the discreteness is not in your favor (this will be in favor of the banks).
Last thought. The script was highlighted to me with various hits on my own website (concerned buyers or homeowners) and my experience in preparing Witness expert reports to work in court. In some countries, the average age of a residential appraiser is very high. I do not know the statistics, but I think that this is approximately 58-60 years in England. This means that many residential appraisers are close to retirement age. Thus, they do not want to adversely affect their retirement or status quo. This leads to excessive caution in valuation, often very much below market stable values, which limits the credit available to you and reduces the demand for this type of property.
To further complicate the situation, the British appraisal industry is about to release a new form of Valuer - someone who analyzes market data, and says that the cost may be between X and Y. Plus, some credit estimates must be made by automatic means, further expansion of the analysis market data, not valuation based on actual verification of the property. These questions will confuse us even more when we emerge from the current UK general election and economic recession, but I will not analyze these issues here (one more day, one more article and another assessment!).
