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Testing the Market and
other Observations...
An appraisal is a third-party
estimate of the value of a piece of property at a particular point in
time. It can confirm what you believe is a fair price or differ entirely.
Appraisals are subjective. Two appraisals performed concurrently will
seldom, if ever, have the same value. However, in the real world, there
is usually a range of acceptable market value for a property, even though
values are in a constant state of flux.
It is more difficult
to pinpoint a value when the market is changing. .
When values are rising, yesterday's
sales may be out of date in terms of what buyers are paying for similar
properties today. When values are falling, comparable sales from a few
months ago may be higher than current market value.
An appraisal estimate
lower than the sale price, can stop your transaction cold.
Understand how real estate
appraisals and appraisers work so you can help solve problems if they
occur, Problem Solving
You'll pay for your lender
to order an appraisal (typically $250 to $600).
You may also choose
to hire an appraiser yourself. Whether the purpose is to prepare a property
tax appeal or estimate the current market value of the home you want to
buy , or sell, lenders won't fund a loan until they establish that the
home is worth the amount requested. Get a head start with the Virtual
AppraiserTM
Most
appraisals support the asking price,
but if yours doesn't,
the lender may back out of its loan commitment.
Problem Solving
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