The appraisal is required by the lender.

 

Since it is a part of the buyers loan, it is normally paid for at closing by the buyer.  Some lenders require the appraisal fee be collected with the  application fee.

 

Appraisals are important!  If the property does not appraise for the contract amount, there are issues.

 

Lenders require appraisals to assure themselves that the property is worth what the buyer is paying.  

 

No one wants to pay more than a property is worth.

 

The lender wants assurance that if you have to sell, you can get the money you have pledged to pay back out of the transaction.

 

There is currently a large part of the housing market which is "under water."

 

That means the houses are not worth what is owed .  Oops!  This is specially sad when the buyer has been foreclosed on.

 

The housing bubble that burst over the past few years was mostly due to people being unable to repay the mortgages that they had committed to.

 

 

Ralph and Jeanne Janisch

P: (970) 335-9718

 E: ralph@durangohometeam.com

 W: www.durangohometeam.com

Durango, Mancos, Bayfield

 
This post has been included in Texas Real Estate News Harris County, TX Real Estate News Houston, TX Real Estate News
Post is included in group: REALTOR LIFE
Post is included in group: The Lounge at Active Rain
Post is included in group: Realtors®
Post is included in group: Posts to Localism
Post is included in group: Local Expert

2 Comments on FAQ 8: Why should I have to pay for the appraisal when I buy a home?

JUN
03
Great blog and great job. Keep up the good work and good luck to you this year. Thanks.
6:36am • #1
523,384 Points 10 Featured Posts Outside Blog Called Shot Master

It is sad when homeowners find themselve "underwater" through no fault of their own.  Thanks, R & J!
10:49am • #2


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Ralph%20%20&%20%20jeannejanisch_004_02_04_2013%20copy Rainmaker_large

Jeanne and Ralph Janisch CRS, Brokers Your Home Team

Durango, CO

More about me…

Durango Home Team

Address: We are always mobile to serve you!, Durango, CO, 81301

Office Phone: (713) 632-4500

Cell Phone: (713) 632-4500

Email Me

Author Bio: Ralph and Jeanne are long time Real Estate BROKERS dedicated to helping good folks buy homes and land.

Add Me


Tomball, TX (77375) Local Weather

Locations of visitors to this page


Listings

Links

Archives

RSS 2.0 Feed for this blog

Find CO real estate agents and Durango real estate on ActiveRain.