Real Estate Tip of The Day:
Raise Your Hand If You Know The Difference Between A Home Valuation And A Home Appraisal ~
If you are financing your home with a mortgage, you will want to be sure to negotiate a home appraisal contingency into the sales contract. This is a process through which a real estate appraiser determines the fair market value of a home. It can assure you and your lender that the price you have agreed to pay for a home is fair.
The appraisal contingency protects you the buyer because if the appraisal comes in too low to justify the agreed-upon purchase price, then you can cancel the deal without penalty or renegotiate the terms of the deal with the seller.
→ HOME VALUATION
A home valuation is the market value of a property determined by the buyer of a property, based on what they think the price of a property should be, and most importantly, what they are willing to pay for it. So it's consumer-driven and is usually the agreed-upon price that a buyer pays and the seller accepts.
And There You Have It!
Lawrence & Sheila Agranoff
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