Consequences of deflated appraisal in New York
Like an inflated appraisal can cause problems, deflated appraisal figures of properties in New York too are an issue.
First of all, if the property’s appraisal value is not as per expectations, the owner faces problems during the sale proceedings. When it comes to estimating the worth of a property, real estate agents and buyers trust only appraisal reports. Given such circumstances, if the appraisal report is not in sync with the demanded price, sale proceedings get stalled midway.
Secondly, deflated appraisal value also affects the refinance proceedings. Lenders approve loan value based upon the property’s valuation. Again, if the property is valued low, the approved loan amount gets equally reduced and thus a funding gap is created. This is a big issue for a borrower.
Now the question is, why is the appraisal report actually indicating low figures. Is it essentially because the New York appraiser is at fault? Appraisals are estimates and usually, to estimate the worth of a property, appraisers inspect the concerned property closely and they consider other similar properties in the vicinity.
Owing to the lack of data, there is a possibility that New York appraiser might make a calculation error but there are other factors as well and these ones, you can control. The step that entails property inspection is quite critical. When the New York property appraiser is visiting your property, it is important that you show him around. After all, you are the one who knows every nook and corner. Also, during the inspection, make sure that the property is clean and tidy. A clustered or a neglected chunk of real estate invariably ends up getting apprised at a deflated value and thereby, begin the related issues.