When you make an offer on a home - do you need to worry about the appraisal?

If you are buying a home and getting a mortgage, an appraisal is part of the mortgage approval.

A common concern for buyers is that they do not "overpay" for a home. Although it is not expressly stated in the purchase contract we use in the Northern Illinois area, as your buyer's agent - we can write into the contract that the home must appraise for the contract purchase price.

You may also ask your real estate attorney to add this clause to the contract during the initial five day attorney approval stage.

If the home does not appraise for the contract's purchase price, you have several options:

1. You can try to renegotiate the contract for the new appraised price.

2. You can work on cancelling the sales contract.

3. You can consult your mortgage lender about putting more money down on the house - in order to secure the home mortgage despite the lower appraisal price.

With home prices fluctuating, the issue of an appraisal could possibly arise. As your buyer's agent, I am going to provide you with current information on neighborhood home pricing. So we should not be too surprised by the home's value.

I want you to have confidence in the decision you are making. And part of my job as your buyer's agent, is to help protect you through the purchase contract.