Most real estate buyers who will rely on bank financing understand that the bank will require an appraisal. The bank, of course, wants to make sure the property is worth what it is going to loan. It comes as a surprise to many buyers that they will be paying for this appraisal. Most accept this condition since the appraisal will confirm to them that the property is worth what they are willing to pay. There are times, however, mostly in commercial and investment purchasing, when the appraisal may not present the value to the buyer that it seems to. Realty Times has an interesting article about this subjet. CLICK HERE to read the article.
While the above article refers to a commercial sales instance, there is plenty to learn from it for the residential buyer. It is important that the prospective buyer understand what the appraisal is and who it is for.
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