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| 7. Appraisal |
- The contract will stipulate who pays for the
appraisal, the buyer or the seller. It is a negotiable item. If it is a
buyer cost, you will need to write a check to your lender by the date
set in the contract (and I'll tell you when). The appraisal is ordered
by your lender and the lender owns the appraisal report. They may choose
not to share this with anyone.
- The appraiser sets the value of the property. He or she uses several
different methods to determine value. One method includes the use of
comparable properties and what they've recently sold for, another is the
cost to replace the property.
- Our desire is that the value set by the appraiser matches or exceeds
the sales price. If the appraisal comes in below the sales price, then
we must either renegotiate the contract or you must come up with enough
cash to cover the deficiency or you may back out of the deal.
- The appraisal is usually the last step before the loan package goes to
underwriting and then we close.
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