Appraisals are done to protect the lender. Lender is giving you money to purchase the home and lender wants to make sure that their money is protected. Home Appraisals are always performed by a licensed real estate appraiser. When buyer's contract for purchase gets accepted, many times it is conditional upon home appraisal coming in at the price you are paying. In today's markets appraisal contingencies are waived by buyers who have enough down payment to purchase the home. Low appraisals can break real estate deal. In rising markets of today, the appraisals are lower than the contract price in many cases. As buyers and sellers agree on the purchase price and terms of the home sale, that is the market value of the home if the deal closes. Appraisals however are backward looking. They look at what is recently sold in the neighborhood. Appraiser then makes adjustments to the sold properties to match the characteristics of the SUBJECT PROPERTY, to come up with the appraised value of the property.
Google+: View post on Google+
Post imported by Google+Blog. Created By Daniel Treadwell.