Why is an Appraisal an Insurance For Homebuyers?

By
Real Estate Broker/Owner with Maxus Realty Group - Broker 301-246-0001 Broker - Realtor - CEO

Why is an Appraisal an Insurance For Homebuyers?

It is there to protect the buyer from over-paying for a home

After all, an appraisal is a formal valuation by a licensed appraiser. It is a subjective opinion of a real property's value.

Appraisers are highly skilled professionals , with lots of experience. 
Besides single-family homes, some appraisers specialize in other areas as well. .
such as acreage, new homes, commercial and industrial property, apartments. .etc

For FHA loans. .

The appraiser must be experienced in the FHA loan procedures and requirements. 
Appraisals are required as part of the underwriting process for mortgage lenders when they are financing a home.
A buyer has wait for an acceptable appraisal before the lender funds the loan.

There are other reasons appraisals offer insurance to buyers as well. .

 Check this video and see the reasons and why you should always believe the appraiser. .and not the seller!


 

 

                                                                             

Herboso & Associates LLC

  

301-246-0001

Our  real estate knowledge is always up-to-date. For expertise you can depend us, call us when you have questions about the market or are ready to make a significant move. . .Quality representation is not expensive, its priceless!
 
 MD, DC and VA Listing Property 
© 2011 - All Rights Reserved
 

homes help

 
 

Why is an Appraisal an Insurance For Homebuyers?

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Groups:
Realtors®
Localism Beta
Local Expert
The Ninety-ninth Percentile
2013 BIG Jumpstart Blog Challenge
Tags:
home buying
first time home buyers
help for home buyers
realtor tips

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
234,747
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Fernando - with prices escalating sellers are requesting that homebuyers remove the appraisal contingency. Buyers still have the insurance in the form of a loan contingency (in CA), but can't come back to the seller to renegotiate the price. With few homes for sale in our area buyers have little choice but to agree. Are you seeing this in your area? Regards Dave

Jan 21, 2013 08:40 AM #1
Rainmaker
3,859,206
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Fernado,

Unfortunatley it all depends on how well versed the appraiser is! Some know the area and some don't..I can send 3 appraisers out and they will all vary from SF measurement to the price!! To me what ever a willing buyer is willing to pay at a certain time in the market is the value of the house:).

Jan 21, 2013 10:14 AM #2
Ambassador
2,006,367
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Slippery slope for all of us. . proceeding with caution is the best plan when it comes to appraisers

Jan 21, 2013 09:56 PM #3
Rainer
278,111
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

It can go both ways but an appraisal is an integral part of a home purchase.  And listing agents need to make sure that the meet the appraiser and provide him/her with the facts that back up the purchase price.  That is your best insurance against an appraiser who might not be familiar with an area.

Jan 21, 2013 10:37 PM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
2,006,367

Fernando Herboso - Broker for Maxus Realty Group

301-246-0001 Serving Maryland, DC and Northern VA
Ask me a question
*
*
*
*
Spam prevention

Additional Information