Appraisal - In the real estate you can’t buy a house with a mortgage unless you have an appraisal performed. Homeowners who want a home equity loan (careful, please!) may need one as well.
Sometimes, we (buyers and real estate agents) get too hung up on the appraisal.
What is an appraisal? Simply an estimation of something's value or worth. If you are paying $200,000 for a house your bank (and you) want to know someone else thinks it is worth what you say you will pay!
By the way, the lender selects the appraiser - not the buyer - and you, the buyer, pay for the appraisal.
In my opinion, appraisals are overrated. I guess that is my appraisal of appraisals!
Your appraisal is good on the day it is signed….or at most, the month before and after the closing!
What happens in your market, your neighborhood, your street in the future will impact its value. In some cases, you lose. In some cases, you win.
Don’t get hung up on the appraisal today because there are no guarantees what will happen in the future. Just ask the folks who purchased homes five years ago who today realize their home's value is much less.
[This is where I say real estate is cyclical...It will come back!]
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.