Consequences of inflated appraisal in New York
When the weather was favorable, nobody bothered to check the ceiling. Now when the winds are high, there is no ceiling to check. When it comes to property appraisal, New York residents are facing a similar situation. Earlier, the housing market was on a high and thus when high appraisal reports were prepared, nobody complained.
After all, it helped everybody in the deal. Seller was happy because this falsified report helped gain a better bargain and brokers too enjoyed the scenario. As for the buyer, property was anyways expensive. Market value was increasing in a matter of seconds and this arrangement worked perfectly. In fact, majority did not even notice that properties were being inappropriately appraised.
But now when things have settled down, the situation of property appraisals in New York has changed. The momentum no longer exists and now when the owners are contemplating sale or change in finance terms, reality hits. The market value of their property is not what they thought it was. This is to say, that in a booming market, properties were bought at an even inflated price.
Consequences for the seller – none; consequences for the buyer – financial distress!
Property appraisal is a procedure that is supposed to indicate the realistic market value of a property. Under any circumstances, if the value is inflated, the whole idea of getting an appraisal report is useless. Thus, for the purposes of appraisal trust only a certified real estate appraiser who is associated with a professional, experienced and reputed New York property appraisal firm. It is just a matter of little caution and this exercise can help you get the best estimate of the property you are willing to buy. Falsified values can mislead and thus best be avoided.