Appraising property value
A professional appraisal helps to protect the interests of the buyer, seller, and lender by determining the fair market value of a property. Once buyer and seller have agreed to a price, but prior to approval of the mortgage application, the lender will order a professional appraisal to ensure that the agreed-on price matches the current market value. The appraiser will provide an unbiased opinion of the property’s value, based on a specific appraisal technique. This may involve pulling comparable–prices of similarly priced homes–to determine accurate value. It also may include examining properties currently on the market or reviewing national real estate trends.
If the appraised value is lower than the sale price, a renegotiation may occur or the seller may be given opportunity to provide supporting documentation that may increase the appraisal. This may include evidence of recent renovations, surveys of recently listed or sold similar properties, or city tax valuations that may increase the property’s worth.
Ask the professionals
Thinking of buying or selling a home or office? Need an appraisal? Contact the professionals at Bradford Real Estate to schedule an assessment of your property and your needs.