1ºGeorgette Thinn. I'm not a real estate agent/broker, lender, buyer or seller (at this time). I've bought and remodeled and sold enough, dealt with enough agents, appraisers and lenders to have gained a good amount of knowledge.
Market value is based on real estate comps and appraisals. Market value can also, loosely, be what a buyer is willing to pay, never the loan amount they will qualify for. Assessments are for taxing purposes.
Appraisals include market value, based on comparables. Listing prices are not necessarily based on appraisals, but should be close if one has a well-informed agent the seller listens to.
Qualifying for a mortgage has nothing to do with market value, tax assessments or appraisal. You qualify for X amount based only on your financial factors.
Each is a different part of the whole when buying a house.
I can want to buy a house for the asking price of 600k, 100k over the appraisal. The lender isn't going to issue a mortgage for 600k though, but on 500k. If I am determined, I will need to come up with 100k in cash, plus the downpayment on the 500k house, to close the gap, and accept a 500k mortgage. I'd never do that.
Many years ago, lenders issued loans to people who wanted to buy a house but were not credit worthy; they're not doing that any longer, nor should they.
And then, a few years ago too many buyers were paying well over asking prices and were also paying well over the appraised value. They pulled cash from wherever they could to close the gap between appraisal and mortgage. They hoped they would have instant equity but that's not how it works. Many ended up upside down. If they can hang on, their house will probably some year be valued what they paid.
2ºFrancine Baum it is easy to blow others out of the water when you artificially inflate the economy through unsustainable tax benefits to corporations and reckless government spending. Trump put into the national debt in 4 years what Obama put into the debt in 8. Trump was also gift wrapped a stable economy on an upward swing from the Obama administration. Biden was handed a Covid dumpster fire of Trump’s own making.
You’re also welcome to explain what Trump would have done differently. He is on record of wanting to provide even more stimulus than Biden wanted to, which is what caused the economy to speed up past its guardrails and capabilities - leading to inflation (which would have been sustainable) but was compounded by corporate greed and artificial inflation through demand. Last I checked a President cannot tell corporations what to value a piece of chicken for or how much they can charge for a bag of chocolates. And a Republican President is even less likely to address that than a Democratic one - the whole small government thing.
Likewise a President cannot control gas prices - have absolutely no idea why half of Facebook thinks they do. Like there’s a gas prices slide switch in the Oval Office. It is not even a national commodity - it is a global one, largely controlled by OPEC which we are wisely not a member. Biden released oil from the national reserve and appealed to the oil industry to make more barrels - which is about all he can do. They refused and why did they refuse? They said Covid - but check their earnings reports for 2022 - RECORD profits Francine. And no a President cannot tell them what to do either. So what precisely would you have Biden do different, ma’am? Not tweak the Fed rate to cool inflation?
If you can’t come up with any other solutions or detail what Trump would have done differently (other than spend us into another credit default) then stop posting your nonsense. I almost wish Trump took a second term so he could have fallen FLAT on his face economically because that man has no idea what he is doing and listens to no one - but we’d be undeniably worse than we are now.
3ºNorma 'Jeannie' Dinsmore in 2016, my daughter was 9 and was doing mock elections in school, she asked me a very wise and legitimate question. “Daddy, how is it even possible for two horrible people, to run for President of the United States?” I agree, we need term limits and age limits, as well as cognitive testing. There is literally tons of videos of Biden inappropriately touching children and women, how anyone can ignore it is beyond me. In 2020 I wrote in Tulsi Gabbard, simply because my party screwed her, just like Sanders. I then changed to an Independent. As long as they keep being successful at dividing we the people, nothing will change, and we will fall as a nation.
4ºPaul Pearson there are other long term major consequences to removing middle class from access to home ownership; namely forced savings. Forget the American Dream, homeownership is the nest egg, especially since most Americans save little to nothing for retirement. Some of that is habitual and self-imposed because we are consumerist, but a lot of it is not given the cost of healthcare, and insurance and other unexpected emergencies that can completely wipe people out financially. Social Security currently usurps 27% of all the federal governments money.... without homeowners, people will end up relying on the state in later life more than they already do. We can't afford it now as is, so if it gets worse, there will be no way to fix it.
5ºPaul Pearson the difference is that the last time interest rates rose, even into the double digits, values were nowhere near where they are now even adjusted for inflation. Those in the middle class who don't already own are absolutely F'd. However, a big piece of the reason rates had to go up was to stop or slow the institutional purchasing of single family homes by companies like BlackRock, who were using cheap money to do it. Apparently it was 1 in 7 purchases from 2020 to 2022. Logically, it would seem better to regulate that institutional purchasing so that individuals wouldn't have to suffer (as much), but good luck getting that passed.
6ºJonatham Suárez Lockward you realize that's kinda how it works right? Most first time home buyers don't have to put anything down, normally you only have to put 10% down to get a home loan. Do you just think normal folks are out here dropping 250k on a house all in one go and paying it off? I got into my house on a first time buyer loan, put nothing down and got locked in at 3.5%..... then biden happened and pulled the rug out from under all his voters. Can't afford a house, still have to pay the college loans back.... sure living up to all them campaign promises ain't he.
7ºJanet Coulson Biden cut off US oil production, making us dependent on the mid East of or communist counties in. South America (for the the fuel that runs vitally every thing in the country )he put US at the mercy of those countries when it comes to cost . The cost of everything goes up as a result . Everything ! It's called inflation ! To control inflation the FED increases rates ! . That my liberal friend IS how it works . You put treasonous criminals in charge of our country , every energy policy he instituted undermined the US and benefited China , everyone!!!! It's almost like he's on their payroll . Oh I forgot HE IS !!!!!!
8ºSummer Lucille you actually get it . Your mistake was saying your piece about past and present presidents .
In today's world , so many people are into the Identity politics thing . They are like rabid sports fans arguing over who's team is best . The thing I've found over the years is no matter who is president , life still plugs right along and the sun still rises in the east .
One can never explain the satisfaction of calling a home and land their own to people who don't own . It requires sweat , time , and money to maintain ownership . But at the end of the road , like you said , we can pass it on .
9ºMarisa Bortot Dalan when I refinanced a home 20 years ago I got the interest rate that is actually what it is at right now. If someone has a good job the difference of a 7% loan compared to a 4% loan shouldn't make that much of a difference. If someone's finances are so tight they can't afford that difference they should probably wait to buy a home. But as you have probably noticed the interest rates on bank accounts and CDs have also gone up. A few years ago it was tough to find those rates above 1%. Now savings accounts are above 2% and it isn't difficult to find CDs above 4%. But rest assured banks which are largely unregulated will find ways to maximize their profits.
10ºPaul Pearson So the foreign investor piece is easier because you simply tack on "non-resident" property tax premiums that will disincentivize outside investors. In Toronto, Ontario, Canada, they added a 15% premium on foreign ownership in 2016 but unfortunately that wasn't enough to slow their hyper market for very long.
Florida, the epicenter of "freedom" already has a 20-25% property tax premium on non-full time residents. That's fine since snowbirds and second vacation homeowners come and fuel the economy in many other ways, but we can put heavy property taxes on outside foreign investors simply trying to park their money in US (and Canadian) real estate.