For weeks you have been keeping your home as clean as possible while inviting strangers to come in and make an offer. Finally, the perfect buyer comes through! You both agree on a price and a smooth closing seems inevitable. But do you know there may still be one more person you need to sell the home to? If you buyer is seeking financing the bank will need to send an appraiser to determine the home's value.
The appraiser is a 3rd party, not related to the buyer or seller, who studies the market to determine fair value for real estate. He sends a detailed report to the bank with his opinion of the value of the home. Being a 3rd party to the transaction his interest is not in confirming the price the buyer and seller agreed to, rather it is to provide an unbiased opinion on the fair value of the home.
Nationwide, many agents are experiencing appraisers who are finding the fair value to be lower than the price agreed on by the buyer and seller. If the appraisal comes in low the bank may not approve a loan for the amount the buyer needs and the deal could fall apart.
When you are interviewing listing agents be sure to ask them about how they prepare for the appraisal. Many appraisers are willing to see what recent sales the listing agent looked at to determine the value of the home. Be sure to look for an agent who will be prepared to defend the value of your home.
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