An appraisal is the opinion of an appraiser, who estimates the value of a home at a specific point in time for the purpose of financing or refinancing a home. Typically, the bank assigns an approved appraiser to do the appraisal. To make sure the appraiser has all the information, you (or your agent) can provide the appraiser with relevant market data that demonstrates the value of the property. Learn more about the appraisal process on this page.
If you don't receive mortgage financing under the current terms of a contract, what can you do? Should you renegotiate or back out of the contract? The terms of your real estate contract may include provisions that will allow you different options.
Mortgage lenders require appraisals before issuing home loans. What happens if the home you want to buy appraises lower than what the seller wants? It depends on the contract. The buyer may lose his earnest money if the home does not appraise out and the seller is unwilling to lower the price. It's up to the buyer to cancel the home buying contract if the contract permits him to do that.
A seller asks about selling his home for a lower home value than its appraisal value. He wonders if selling for a lower home value could be illegal. A wrong home value could lead to mortgage fraud or call the appraisal into question.
A home seller accepted an offer on her home when the buyer's mortgage company appraised the property at a lower value. The rising level of foreclosures and defaults is forcing mortgage lenders to be more careful about appraisals and making sure homes are really worth what buyers want to pay. It might be beneficial to have another appraiser look at the house.
Land can be given as a gift through the use of a quit claim deed. No taxes need to be paid if the gift is valued at less than $12,000. You might need an appraisal to prove the value of the land to the IRS.
When you sell your home an appraiser will conduct an appraisal to help the lender determine how much of a mortgage loan to grant to the home buyer. It's illegal for a home buyer to get a mortgage in excess of the home's sale price, especially if the mortgage loan is based on an inaccurate appraisal. When the home buyer wants the home seller to return some of the mortgage loan money it may become fraud. In a situation such as this it's critical for the home seller to contact an attorney.
How much should you sell your home for? Pricing a home is not easy but it pays to look at what the market prices are and other appraisal factors. Remember, you can always pick a listing price, see how it does, and reprice the home later if necessary.
Many, but not all, real estate contracts include a provision allowing some time for a buyer to obtain financing for the purchase of a home. If within the time allotted a buyer is unable to obtain financing and the seller is notified, the contract is terminated and the buyer receives a full return of any deposit. Usually, this right to terminate a contract if you are unable to obtain financing is called a mortgage contingency.
After being approved for a mortgage, a homeowner finds out that the appraisal amount is ten thousand dollars less than the agreed upon price. Having an appraisal price come in different than the sales price is a common situation today with quickly rising home prices. The buyer should have the house appraised again with their agent present.