Tips for a More Successful Appraisal
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Real estate appraisals are powerful, particularly in today’s nervous market as loan underwriters take a more skeptical approach to approving mortgages for buyers and homeowners have more trouble qualifying for home equity loans. The appraised value of a home is, after all, the benchmark banks use to calculate collateral, so it directly affects sales prices. Even if a buyer offers a higher price the sale will not go through – unless it is a cash sale not involving a mortgage – until the lender’s appraisal supports and validates the offering price. When the appraisal report comes in too low, for instance, the loan is denied and the buyer either walks away or the homeowner agrees to sell at the lower price.