Buyers are often concerned about over paying for a home. Particularly in a sellers market, most folks are afraid they could easily spend more for the home than it is worth. The fail safe for these worries is the home appraisal. The buyer generally pays for the appraisal as part of the mortgage fees. The lender is cautious because they typically own more of the property than the buyer and it is therefore not in their interest to pay more than the home is worth.
Once this is explained to a potential buyer they usually relax a little. The process is set up to protect both the purchaser and the bank. No one wants to think they have overpaid but paying more than the property is worth is not likely to happen with an appraisal. Even a cash buyer can certainly purchase subject to an appraisal: in fact it is wise to do so. Federal regulations set forth guidelines, so as much as some think appraisals are arbitrary, they really are not.
Why are appraisals important? They guarantee that no one gets hurt. Don't be afraid of an appraisal: it is your friend.
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