| HAMPTON APPRAISAL & REALTY CORP 103-7 west Montauk Hwy Hampton Bays NY 11946 631-728-7222 / fax 631-728-7311 www.hamptonsappraisers.com |
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| Questions & Answers Appraisal Information Q: What is an appraisal? A: A real estate appraisal is an unbiased opinion of the value of real estate, by a qualified individual. Q: What types of appraisal services does Hampton Appraisal & Realty Corp provide? A: Hampton Appraisal & Realty Corp provides valuation services on all types of residential properties including one to four family residential real estate properties and vacant land.(specializing in the Hampton's Area and Waterfront Properties.) Our appraisers are qualified to provide appraisals for first and second mortgage lending, divorce settlements, Insurance, estate purposes and tax grievance. We provide full 1004 interior / exterior appraisals as well as 2055 exterior only appraisal reports. Q: What types or levels of appraisers are there? A: There are different types or levels of residential real estate appraisers that are qualified to perform different levels of an appraisal for different end uses. These are the basic types and their requirements. (starting 2008 requirements to become an appraiser will be more difficult). Appraiser Assistant (class hours and working under a certified appraiser) Licensed Appraiser (class hours, 2,000 hrs of appraisals,pass NY state lic. exam) Certified Residential Appraiser (class hours, 2500 hrs of appraisals, pass NY state cert exam) Q: What qualifications are appraisers required to have? A: New York requires that all Real Estate Appraisers be state licensed or certified and have fulfilled education and experience requirements. They must adhere to strict industry standards and a professional code of ethics. Q: What factors does the appraiser consider when appraising a property? A: The appraiser looks at and reviews a number of aspects of the property to estimate value. Location, neighborhood, style, age, condition, quality of construction, zoning, square footage, recent sales, cost of construction(replacement value) and rent roll if necessary. Q: Who does Hampton Appraisal & Realty Corp provide their services to? A: Hampton Appraisal & Realty Corp has a wide range of clients including Banks, Private Investors, Mortgage Brokers / Bankers, Attorneys, Insurance Companies, Individual homeowners and Buyers. Q: What's in a residential real estate appraisal report? A: In addition to the main appraisal reporting forms ( 2055 exterior form) (1004 interior / exterior form) which contain information and analyses of the subject property, neighborhood and market. Depending on the level or scope of the report there are typically attachments to explain, prove and back up the appraisers evaluation. Pictures of the subject property and comparable sales, a detailed sketch of the subject property used to calculate square footage, a location map of the subject property in relation to the comparable sales utilized in the report and appraisal reports should contain the scope of the appraisal a Statement of Limiting Conditions and Appraiser's Certification # and or license # with signature. Q: Do I own the Appraisal if I pay for it, and Who does the Appraiser work for? A: The appraiser works for and the report belongs to whomever orders the appraisal not who pays for the service. In fact the appraiser is not permitted to discuss any portion of an appraisal with anyone other than the person who ordered the appraisal (lender) unless otherwise instructed, regardless of who pays for the appraisal report. However your lender is required to provide you with a copy of an appraisal report upon your request. Q: How long does an appraisal take? A: The a residential appraisal report can be completed in 24 to 48 hours from the time of the physical inspection of the property. This part of the process of the appraisal report can take from 30 min to a few hours, depending upon the size and complexity of the subject. After the field work and confirming all information on the subject and all comps that will be used an appraisal report is done on a 2055 exterior or a 1004 full interior / exterior report form. Mortgage Information Q: What is a Mortgage Banker A true Mortgage Banker is a lender that is large enough to originate loans and create pools of loans which they sell directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Any company that does this is considered to be a mortgage banker. They can very greatly in size. Some may service the loans they originate, but not all of them will. Most true mortgage bankers have wholesale lending divisions. Examples of two of the largest mortgage bankers are Countrywide Home Loans and Wells Fargo Mortgage. One is associated with a bank and the other is not, but both are most correctly classified as mortgage bankers. A lot of companies call themselves mortgage bankers and some deserve the title. For others, it is mostly marketing. Q: What is a Mortgage Broker Mortgage Brokers are companies that originate loans with the intention of selling them to wholesale lending institutions. A broker has established relationships with these companies. Underwriting and funding takes place at the wholesale lender. Many mortgage brokers are also correspondents, which is why many of them also claim to be mortgage bankers. Mortgage brokers deal with lending institutions that have a wholesale loan department. Q: What is a Wholesale Lender Most mortgage bankers and portfolio lenders also act as wholesale lenders, catering to mortgage brokers for loan origination. Some wholesale lenders do not even have their own retail branches, relying solely on mortgage brokers for their loans. These wholesale divisions offer loans to mortgage brokers at a lower cost than their retail branches offer them to the general public. The mortgage broker then adds on his fee. The result for the borrower is that the loan costs about the same as if he obtained a loan directly from a retail branch of the wholesale lender. |
| This Months # 1 Question: Q What is a Short Sale? A short sale is an "arrangement" between the current owner of a home and the bank that lent them the money to buy their home to accept an offer for less than the total amount owed to pay off the home. The "deficiency" is the difference between the amount owed and what the bank collects at the short sale. Although, the "arrangement" can take many different forms, there is no other definition of a short sale, because many people use the term as if it meant "a sale under market value." However a bank owned (foreclosed) house is not a short sale or a seller deciding to lower their price and take less profit is not a short sale. For it to be a Short Sale, Either the seller, or the bank is on the losing end and gets shorted. Another important definition of a short sale is how it differs from foreclosure. In foreclosure, the homeowner falls behind on their payments and the bank repossesses the house and sells it. In almost all cases, THE BANK PURSUES THE HOMEOWNER FOR THE DEFICIENCY!!! Short sales arise when a seller owes more on their house than they can sell it for. The owner of the home then attempts to make an arrangement with their lender to sell the house for less than is owed. |