One of the most difficult things to explain to a client when buying or selling a home is the appraisal. Here are two of the most common misconceptions in regards to the appraisal:
Who pays for it
The purpose of the appraisal
Texas Realtor decided to ask a couple of real estate brokers who are licensed appraisers to provide insight. So, in December 2020, Joel Oliviery wrote: "Appraisers are required to be completely unbiased. The appraiser certifies that the appraisal was objective before delivering it to the lender. The lender then uses the appraisal to determine how much money to loan to the homebuyer. "If the bank lends this money to a borrower and in a year the borrower defaults, can the bank sell that property and get all of its money back? That's what this is all about".
Another thing Oliviery points out, is that the appraisal is paid by the buyer, but the lender is the client. It is this relationship that protects the buyers' interest. As a Realtor, being aware of this relationship helps me make an informed decision when conducting a Comparative Market Analysis (CMA), that I draw my information from. I have to convey to the seller, that a history of sales of similars homes in the area, is what is driving the suggested home price.
If you have time, and would like to read the entire article, please check out the link I have provided. If you want to list your home give me a call. I truly believe my Ethos, Pathos, and Logos will convince you to let me help you sell your home.
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