Coldwell Banker Countryside, Realtors

• Over 10 years of real estate marketing experience, and over 18 years property management experience.

• Virtual Tours, Complete Internet Marketing of all property listings which is the best way to market your property to not only local cliental, but potential buyers all over the world.

• Going the extra mile to find you the perfect property, or buyer for your property, No listing or client is too big or too small that they do not get our complete attention!

Introduction
What’s the cost and who pays?
Do you get a copy?
What if the appraisal comes in below the contract price?

Introduction
Banks require an estimate of value prior to making a loan because they don't want to make a loan on a property worth less than the contract price. An appraiser is sent out to the property to determine the value of the property and make sure the value is in line with the sales price. Appraisers inspect and measure the property and check the sales comps in the immediate area. Appraisers are not home inspectors they are just inspecting the general condition of the home.
Banks require an estimate of value prior to making a loan because they don't want to make a loan on a property worth less than the contract price. An appraiser is sent out to the property to determine the value of the property and make sure the value is in line with the sales price. Appraisers inspect and measure the property and check the sales comps in the immediate area. Appraisers are not home inspectors they are just inspecting the general condition of the home.

What’s the cost and who pays?
The buyer usually pays for the appraisal unless the buyer has cut a special deal with the lender. Depending on the lender the appraisal may be paid in advance or incorporated into an application fee, some are COD, which means the buyer must write a check at the time of the appraisal and finally some lenders will bill the buyer at closing. An average appraisal is roughly $275-$600 depending on the size of the home.

Do you get a copy?
The buyer doesn't usually receive a copy unless specifically requested by the buyer. However, you paid for it so you certainly are entitled to it if you wish. Some lenders have "policies" that don't release the appraisal. Check with your lender.
The buyer doesn't usually receive a copy unless specifically requested by the buyer. However, you paid for it so you certainly are entitled to it if you wish. Some lenders have "policies" that don't release the appraisal. Check with your lender.

What if the appraisal comes in below the contract price?
If the appraisal comes in too low, it can be a problem. The appraiser is saying the property is not worth what you agreed to pay for it. When this happens, usually both of the real estate agents will mobilize and scour the MLS for recent sales comps that the appraiser may have overlooked. Sometimes these comps can help change the appraiser's opinion of value and he will raise the appraisal price of the home. The agents will also look for properties in the MLS that are currently in a pending status to see if they can determine the contract sales price. If they can get this information it can usually be used to help the appraiser raise his estimate of value. Usually, most appraisals can be readjusted higher with a little bit of legwork. If the final appraisal is below the contract sales price you have the option of canceling the contract or paying the difference out of pocket. If the appraisal comes in higher than the contract price, then great, you got a great deal on the home. This doesn't happen very often.
If the appraisal comes in too low, it can be a problem. The appraiser is saying the property is not worth what you agreed to pay for it. When this happens, usually both of the real estate agents will mobilize and scour the MLS for recent sales comps that the appraiser may have overlooked. Sometimes these comps can help change the appraiser's opinion of value and he will raise the appraisal price of the home. The agents will also look for properties in the MLS that are currently in a pending status to see if they can determine the contract sales price. If they can get this information it can usually be used to help the appraiser raise his estimate of value. Usually, most appraisals can be readjusted higher with a little bit of legwork. If the final appraisal is below the contract sales price you have the option of canceling the contract or paying the difference out of pocket. If the appraisal comes in higher than the contract price, then great, you got a great deal on the home. This doesn't happen very often.