What is an appraisal? Short version
An appraisal is the bank or lender sending out a representative to make sure the property is worth the amount of the loan price.
The appraisal takes place after a seller has accepted a buyer's offer and typically after the buyers inspection has taken place. As your Realtor, I have no idea who the appraiser will be, and the appraisal is at the complete discretion of the appraiser. YIKES!!
That puts both sides in a bit of a bind if the appraisal comes back low. Here is the caution in this 2017 market. As a buyer make your strongest offer. As a seller take the strongest offer. Just be advised that the appraisal could come back low. If that is the case the buyer and seller can renegotiate the price i.e. the seller can lower the price, or the buyer can bring more cash to the table to meet the originally agreed on sales price. The caution here, is that certain types of loans may not allow the buyer to bring more money, which would put the burden on the seller to accept the lower price or to cancel the deal and look for a new buyer.
In this current market, Spring 2017, there is a high demand and low supply. Interest rates are still low which makes it a great time to buy. However, there are just not enough houses for sale on the market.
Any questions on appraisals, or any other process in the Real Estate buying process please give me a call today and I can help you.
EXIT Realty Metro
***EXPERIENCE EXCELLENCE IN REAL ESTATE*