Mike Rigley Certified Default Advocate,
Distressed Property Expert and your short sale specialist here thank you for
joining us. Today let’s talk about how value is determined in a West Sacramento Short Sale.
Before the lender /
servicer / investor can make a decision on your West Sacramento Short Sale, they have to
determine the Fair Market Value of the property. There are several ways lenders
go about this with some being more accurate than others depending on the
property type. They include the Broker Price Opinion or BPO, the Assessed
Property Value or APV and the full appraisal. Last time we discussed the BPO.
Today let’s talk about the APV and Appraisal.
The APV is what value
the county is showing for property tax purposes. The APV can be misleading.
Assessed Value and Market value can be two very different numbers. In a
declining market when West Sacramento Short Sale are most
prevalent the APV will be high giving the short sale servicer / investor an
inaccurate value. The APV is generally used when the West Sacramento Short Sale lender / investor
needs a ball park value when deciding to move forward with the file or not.
The last method is the
full on appraisal by a licensed appraiser. These are generally considered the
most accurate when determining market value. The issue with an appraisal is the
same as with any human generated report where the preparer is compensated by
the piece not the quality of the work. If the appraiser is from out of the area
or is unfamiliar with the nuances of the neighborhood a value too high or too
low can realized.
In an appraisal the
appraiser will measure the exterior of the property to determine square
footage, take a full set of interior and exterior photos and even take photos
of the comparable properties he is using for the report. Much more time
consuming and hopefully more accurate an appraisal usually costs between $350 -
$450 depending on the servicer’s agreement with the appraiser.
So there you have it.
You can see how it is possible to get such a wide range of value on a property.
Really the true value of a property is exactly what someone is willing to pay
for it.
Is a West Sacramento Short Sale Right for Me?
To get a better idea of when
your West Sacramento home will be worth what you owe, log
in to www.shortsaleandloanmod.info for a free
estimate or call me today for a free no obligation consultation or for the
latest West Sacramento short sale information. Call me
today and sleep better tonight; you’ll be glad you did.
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