leveraged. There are several ways a home’s value is derived.
ONLINE HOME VALUATION
Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database, as previously discussed. Note that the assessment is based on available data with no guarantee of accuracy and often uses an algorithm that simply averages comparable sales in the geographic area. These tools might be quick and easy, but they don’t take into consideration factors like location, current local trends and the condition of the property. Be aware that the prices arrived upon might be highly inaccurate. If your house is located in a small, sought-after, exclusive neighborhood of custom-built homes that is surrounded by neighborhoods of tract-built homes, your online estimate may be considerably lower than it should be, especially during periods of time when sales activity is low. This is another home we sold in 2010 in Arnold, Maryland. It's on a single street of homes built in the early 2000s, and it's surrounded by homes built in the 1960s and 1970s.
Not only is this a potential issue with online estimates, but we had a challenge with the appraisal when it sold. In 2010, we were still coming out of the recession that was created after the mortgage crisis of 2008. This was the year the CFPB was
established as an independent bureau within the Federal Reserve System to be headed by a Director. They were creating rules to try to keep widespread mortgage fraud from happening again and lenders were being extremely careful with their paperwork and processes. The underwriter didn't like that this home was
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