The appraisal of the Blue Ridge house didn’t come in where we needed it to. Even though we could document the appraisal was unfair, we were stuck with it. That’s one reason you should always have more than one exit strategy for every property.
This post is a shoutout to people who hold one of the hardest jobs in the real estate industry: appraisers.
Appraisers are real estate professionals who estimate the valuation of a property. Most lenders, and all who are regulated by the federal government, require an appraisal to justify their loans. And even though the buyer pays for the appraisal (either directly or indirectly), the appraiser’s fiduciary responsibility lies with the lender.
That misalignment of interests leads to appraisers catching hell from both buyers and sellers. If the appraiser’s valuation of the house comes in significantly lower than the contract price, there are three possible outcomes: Continue reading
Hermann says please like and share!