 What Is Your Louisville Home Worth?Friday, June 11, 2010 - Article by: Tre Pryor, REALTOR -
This is a topic of great importance in today's changing real estate market and one that we will continue to cover here at LouisvilleHomesBlog.com consistently. Back in March, we asked Joe Manausa, who covers Tallahassee Real Estate, to look at this topic and he responded with, How To Find the Value of Your Louisville Home, which highlights the different ways in which a home can be valued. Just last month I wrote Determining Home Values, Zillow 'Zestimates' Are Fraught With Danger that warns against the dangers of using free online data to create a home value without digging deeper and unearthing all the additional, related facts. Today, I'm going to reference an incredible piece written by Steve Harney that looks at the current mortgage landscape and how the bank's appraiser and his report affects buyers and sellers in a real estate transaction. How Banks Look at Home ValueBanks look at homes value differently than buyers do. A buyer finds their favorite home in their price range then wants to know, "What is this Louisville home worth?" The bank, however, looks at the risk/reward of the mortgage. They want to analyze all the data before agreeing to offer a buyer a loan. In the past, the buyer's credit was of paramount importance. While that's still a factor, the increased number of loan defaults is playing a much larger role. The number of people defaulting on their mortgage payments is currently ten times greater than historical levels. Some borrowers are even 'walking away' from their mortgage obligation even if they have the financial resources to pay. There is currently a greater chance that the bank will have to foreclose on a loan. That makes the appraised value of the home (the collateral behind the loan) more important. We have seen banks become more conservative with appraisals because of this. |
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