Getting a home appraised is considered a safeguard for both the buyer and the mortgage lender. Buyers know they are not overpaying for their house based on comparable sale prices and mortgage lenders know the value of the home is not overestimated.
But what happens when appraisal values are inaccurate?
The downturned real estate market has caused appraisal fees to drop, so very often appraisers will travel great distances to do appraisals. But if an appraiser travels 50+ miles to determine the value of a home, does that appraiser really know the local market well enough to make the appraisal accurate?
Inaccurate appraisals can cause delays in refinancing or selling the home. There are also market nuances that out of town appraisers may not be aware of, thus tainting their appraisal.
Want to make sure your appraiser does an accurate market analysis? Check out our free Market Sales Analysis form.
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My opinion is the current foreclosure crisis will not be resolved until prices reach levels that people can afford. I think we are seeing this correction happen now, not the inaccuracies of appraisers.
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