Beware of appraisals!

One of the biggest issues coming up in home sales today is homes not appraising for the value of the home sale on the purchase agreement. Once a purchase agreement is fully executed by both parties, the next step is having an appraisal done on the home to justify and verify the purchase price. All lenders will require an appraisal on the property once the purchase agreement has been signed. Today lenders are very concerned with all the homes appraising for value due to all of the foreclosures coming to the surface. Lenders do not want to give a mortgage on a home that is not worth market value and be put in a situation of having a home not worth what has been given out on a mortgage due to the high foreclosures occurring. To avoid this potential show stopper, I encourage all of my prospective sellers to have an appraisal done prior to listing the home so they have a document performed by a licensed professional to back their homes listing price. Average appraisals run $300-$400 but this is clearly worth the investment. I have seen many buyers walk from a deal due to a home not appraising for the purchase price. I have even offered to my clients that I will reimburse the cost of the appraisal once the home successfully closes.


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