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> Homes are priced by looking at recent comparable home sales. If your neighbors to both your right and left have had their house foreclosed on, the value of yo
by rlpb 10y ago
> Homes are priced by looking at recent comparable home sales. If your neighbors to both your right and left have had their house foreclosed on, the value of your home will go down.
Surely the lower valuation on your home is incorrectly low, though? Or is there some actual reason why buyers would want it less?
- slg 10y agoIt is a supply and demand problem. Your house is only worth what someone will pay for it. If the potential buyers have several cheaper foreclosed homes to buy instead of your home, the potential sale price of your home will go down
- coredog64 10y agoThe banks use "comps" to figure out the maximum loan value. Assuming the housing nearby as similar, their actual sale price provides the price signals markets crave.
- chrisabrams 10y agoComps have nothing to do with loan value. Your income, credit, and assets and debt decide what your max loan value is.
- aaronblohowiak 10y agoyour financing can be denied if the house doesn't appraise, depending on your deal with your lender
- brandmeyer 10y agoAnd while the appraisal is supposed to be independent, the appraiser knows the contracted sale price of the house at the time of the appraisal.
- deleted 10y ago[deleted]
- chrisabrams 10y agoWell, my response was to a statement that has been edited :/
- mrgriscom 10y agoBecause the market is flooded with similar houses for cheaper.