Real Estate Appraisals—What's the Real Value?
Learn how an appraised value can change the plans of the buyer and seller.
One area we have yet to discuss in any great detail is the real estate appraisal. Any time a new loan is written for property, the new lender will order a value appraisal of the property. The appraisal is typically paid for by the borrower, either outside of closing or as part of the lender’s fees charged to the buyer at closing. It’s important to understand the role of the appraiser and the positive and negative effects the appraisal can have on the transaction. In the past, the lender had a list of approved appraisers and would simply choose from that list and order the appraisal directly. That changed in the wake of the market crash. Lenders are now required to order appraisals from a third-party management company (that then contracts …
