An appraisal is a licensed appraiser’s opinion of value of a property usually based on comparable sales. When buyers get a mortgage, the lender requests an appraiser to conduct a written valuation of the house. The lender will compare the appraisal price to the selling price to make sure the buyer is not borrowing more than the house is worth. An appraisal is subjective and is more of an art than science. Some appraisers are more generous in their adjustments and some are more conservative, all following lending guidelines. In quickly appreciating markets such as this one, it does happen where a home will appraise lower than the agreed upon sales price. The lack of similar sales and higher prices due to bidding wars make it challenging for appraisers. If the appraisal comes in low, it does not mean the seller must sell it to you at the appraised value. It can become a point of renegotiation or buyers may have to pay out of pocket for the difference. Obviously the goal is to make the sale work for both parties. Remaining calm and working with an experienced agent is the key to a successful sale. Give me a call if you'd like professional service in buying or selling a home. 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com.
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