Do you have to get a home Value Appraisal?

It’s no secret that the huge number of overvalued properties at the end of the 2000s led to out-of-whack How much does a condo in Bangkok cost? – Full Write-up – housing prices. Values are coming painfully back into alignment with market realities, but this process is proving to be a long one, requiring patience and creativity from those who need to sell without waiting. A December 2010 overhaul of practices and oversight provides updates to the home appraisal process that looks to protect home buyers and sellers.

Just finished the basement? Federal Reserve System, et al. Harney, Kenneth. “Federal Reserve’s Proposed Home Appraisal Rules May Not Prevent Inaccurate Valuations.” Los Angeles Times online. Department of Labor. Occupational Outlook Handbook, 2010-2011 Edition, Appraisers and Assessors of Real Estate. An eager buyer wants a workshop space with a drain in the concrete floors. Bureau of Labor Statistics, U.S. The grass may be greener on the other side of the street, but chances are there is a buyer out there that will look at your house and consider it the one. Cornett, Brandon. “Home Value Killers of 2011: Inventory and Unemployment.” Home Buying Institute.

Home loans in 2008 were so divided and spread across the financial spectrum, it was entirely possible a given homeowner could unwittingly own shares in his or her own mortgage. But 2008 wasn’t 2006; the housing market in the United States was no longer booming. It sounds innocuous enough, and it is. It’s also an excellent and safe way to make money when the housing market is booming. And in the early 21st century, the U.S. And it was the mortgage-backed security that killed it.

Businesses trim costs by laying off workers, so unemployment increases and consumers spend even less. A crash can lead to a recession. When enough companies lose their values at once, the stock market crashes. How did mortgage-backed securities lead to the financial crisis of 2007 and 2008? Simply put, the financial meltdown was caused by an overextension of mortgages to weak borrowers. A bad enough crash can lead to a depression; in other words, an economy brought to its knees. These unstable mortgages were repackaged as AAA-rated mortgage-backed securities and sold to lenders attracted by the supposedly safe residential securities.

This would be the first domino in an effect that spread throughout the U.S economy. When the foreclosure rate began to increase late in 2006, it also released more new homes on the market. The presence of more homes on the market brought down housing prices. New home construction had already outpaced demand, and when large numbers of foreclosures became available at deeply discounted prices, builders found that they couldn’t sell the homes they’d built.

When things are bad at Fannie Mae and Freddie Mac, things are bad for the housing industry. When consumers can’t spend money, companies can’t sell products; low sales means lessened value, and so the company’s stock price per share declines. Lenders issue home loans and sell them to one of the companies or use the loans as collateral to borrow more money; the role of each giant is to infuse cash into the lending industry. If consumers can’t borrow money, they can’t spend it. When Mac and Mae won’t lend money or purchase loans, direct lenders become less likely to lend money to consumers.