As a homebuyer or seller, you may have come across the term “appraisal” in the real estate world. But what exactly are appraisals, and why are they important? Let’s delve into the basics of real estate appraisals and explore the issues with waiving them.
What are Appraisals?
Real estate appraisals are assessments conducted by professional appraisers to determine the value of a property. Various factors are taken into consideration, including the property’s location, size, condition, comparable sales in the area, and market trends. Appraisals are often required by lenders when obtaining a mortgage loan because they serve as a safeguard for the lender.
What Are the Issues With Waiving Appraisals?
One of the issues with waiving appraisals is the potential for overpaying for a property. Without a proper appraisal, buyers may rely solely on the seller’s asking price or offer price. These prices could be inflated or not reflective of the true market value. You could end up paying more for a property than what it is worth, leading to financial strain and potential difficulties in obtaining financing. Another issue with waiving appraisals is that you could be compelled to bring additional funds to the closing if you cannot finance the difference between the appraised value and purchase price.
Why It’s Important to Have an Experienced Real Estate Attorney on Your Side for Appraisals
Navigating the steps of a real estate transaction can be challenging, especially when it comes to appraisals. That’s why it is crucial to have an experienced real estate attorney by your side. A skilled attorney can help you understand the intricacies of appraisals, review appraisal reports, negotiate with lenders, and protect your interests throughout the process.
Ready to partner with a real estate attorney you can trust? Contact Riley & Gutman today!