What is an Appraisal? In real estate, an appraisal is a process of determining the value of a property. These transactions happen only rarely, but they are extremely unique, which is why they require a professional. To learn more, read on. Listed below are some basic principles of property valuation. Listed below are some tips to remember when performing an Appraisal. Listed below are some of the most common uses for an Appraisal.
What happens if a buyer receives a lower appraisal than the one the seller has requested? When an appraisal shows that a property is worth less than the buyer has negotiated, the buyer may be able to get a better deal or back out of the purchase. On the other hand, if the appraisal is higher than what the buyer is willing to pay, the buyer might be able to back out of the purchase agreement, or re-negotiate with the seller. In such a case, the buyer could choose to pay the difference between the appraised value and the actual price of the home.
The lender may require the buyer to pay for an appraisal if the seller refuses to pay for it. Appraisals are usually paid for by the buyer unless the seller pays for them. The cost of an appraisal will depend on the size of the property, where it is located, and the amount of research the appraiser performs. Additionally, appraisers survey boundary lines on a property to ensure that they accurately reflect the square acreage of the property.