What is the difference between the value evaluated and the value rated?

value and value evaluated are both methods of evaluation of the value of the house. The difference between the two is in the one who performs the evaluation, what the evaluation is used for and how the evaluation is done. In general, the evaluation is carried out to determine the value of a house for a loan for housing or purchase. The evaluation is usually carried out by a government tax assessor for the purpose of determining real estate tax.

When a mortgage loan arises, the creditor will usually require an assessment to be made on the property to ensure that the loan amount is not more than a property at present. In addition, most mortgage creditors impose percentage instructions known as LTV loan (LTV) in the origin of the mortgage loan. The credit value is defined as a percentage of the loan amount divided by the current value of the house. For example, if the mortgage creditor has deposited the maximum LTV 90% and the debtor's house has a ppraised acknowledgment of $ 100,000 in the US (USD), the maximum amount that the customer could borrow is 90 00$ 0 USD. The higher the value of the house, the greater the amount that the debtor will be able to borrow.

The evaluation is generally carried out by a certified independent estate of a third -party property who is not associated with the buyer or seller. The evaluated value of the house is considered to be the current market value of the house. The current market value is an estimated estimate of what the home could reasonably sell. The value of the house is determined by comparing the house with other comparable houses in the area. The evaluator will consider what similar houses have been sold, along with the type of house construction, the overall condition, in any civic way, opinions and the location of the estimated property in determining the estimated values.

In local governments that charge property owners, the value evaluated is determined by the authority of local tax evaluators. The assessment value of the house is not set atan individual basis as the value evaluated. Rather, the tax assessor determines the value of the house on the basis of a formula of recent prices on the sale of houses comparable real estate.

The frequency in which the evaluation is carried out may vary locally; Therefore, the evaluated value may not be the exact estimate of the current market value of the house. Real estate owners who are interested in determining how their local governments calculate the valuable value of the property or how their real estate taxes are calculated

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