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justify selling price
Tony and Suzanne Marri...
Debe Maxwell, CRS
Homeowners? To set the sales price, primarily.
Ron and Alexandra Seigel
If they have an appraisal BEFORE they list, they may be of great help to verify the figures to be given by the agents who will be called in....
other than that, the appraisal is done for the bank to make sure the property is worth the sale price on the agreement.... the bank doesn't want to own it in the future!!
They don't. They help banks.
They help buyers get a mortgage so the homeowner can sell their home. Or they help the homeowner know value to refinance. Or they help the homeowner to show value to drop mortgage insurance. Or they help a homeowner price their home for sale. Or they help the homeowner to show value to get a home equity line on their home. -Kasey
It depends on the situation.
They help the lender control their risk & downside plus reel sellers in
They can defend a Seller's Asking Price
Appraisals don't help homeowners other than establishing a price in which the lender will give a mortgage to a buyer.
They don't really help or hurt homeowners, but are a way to establish a market value.
Identifies obstacles that may lay ahead.
The biggie is make sure the bank is not the 'sold price' negotiator.
At least you know the true value of your biggest asset.
Harry F. D'Elia nailed this one!
They might help justify an asking price.
To secure mortgage. Most of the buyers do borrow money from lenders.
All the answers I planned to offer have been stated.
You have great answers here.
Indicate that there is enough value to justify the loan.
An interesting question.
In some ways it helps keep a buyer from overpaying if the contract is written with an appraisal contingency.
It's a part of an important process.
It used to be the home sellers justify the price based on appraisal often more than one.
These days the sellers have unrealistic expectation sky is the entry point.
They think they contral the price.
Refinancing is one way. Otherwise, they are used as a lending tool.
For a seller it tells you what the property is worth to sell it at or near. For buyers, it insures you are not paying over market value. For banks, they want loan more than the home is worth.
Hopefully, they provide accurate evaluations.
Demonstrates what other similar houses have sold for in last 90 days. Is not a guarantee or promise. A market opinion
Verifies loan amount request! Then again...
Shows true value