Buyer Tips | Seller Tips | General Tips | Real Estate Glossary
Many sellers think that the
price of their home is determined solely by what they are willing to accept and
what the buyer is willing to pay. There is one more variable that can complicate
the sale of a home--the lender's appraisal.
To protect the interest of their investors, the
mortgage lender hires an appraiser to give an independent, objective evaluation
of what the property is worth. If the appraised value is lower than the selling
price, the seller will be glad that he has enlisted the services of a
professional Realtor. The agent can give the appraiser information about
neighboring homes that have recently sold that support the seller's price. If an
appeal to the appraiser is not successful, some delicate negotiations will
follow. Both the seller and the buyer may have to make concessions to make the
transaction work. The bank may ask the buyers to increase their down payment or
ask the sellers for a reduction in price.
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