I've had a lot of questions recently about appraisals, so I thought I'd spend a moment and try to shed some light on this issue. I'm NOT an appraiser, but I've sure seen plenty of them...
This is just a quick once over. Follow this link for a more detailed article about Montpelier and Barre real estate appraisals.
Basically an appraisal is the bank's way of ensuring that they're not loaning more money than the place is worth. It also protects their equity position in the collateral.
As a buyer, you care less about the bank's position, and more that an appraisal makes it unlikely to overpay for Montpelier real estate or Barre real estate. You also want to make sure you have the proper protection clauses in your contract.
As a seller, it's an indicator that the market will establish the highest price. It doesn't do a whole lot of good to test the market at a price 10% higher, because the appraisal's going to call that out.
Be smart about Montpelier and Barre real estate. Remember Ray.
Comments(3)