Highlands NC Real Estate, Ins and Outs of Appraisals
When buying and selling Highlands NC real estate it is important to know the ins and outs of appraisals. While the appraisal may be simple and easy, coming in at target, there are scenarios when it will be high or low. An appraisal can be helpful for sellers in terms of setting a list price and is a necessity for acquiring a loan. A Highlands NC REALTOR will be helpful in navigating the process while offering plenty of information.
When is an appraisal necessary?
An appraisal is necessary for a Highlands NC property that is under contract with a finance contingency. The lender will hire the appraiser in this instance. Ultimately, the appraisal will come in at the contracted price, above it, or below it. While a low appraisal can create an issue, it can also lead to negotiation or a request for a new appraisal. An appraisal is not necessary for a seller but can certainly be helpful for determining an asking price.
What happens with a low appraisal?
When a Highlands NC home for sale appraises low there can be issues with the loan. A lender does not want to lend more than the value of a home. As a result, a low appraisal means that a buyer can walk away from the sale, come to the table with the difference in price, or negotiate for a lower price. It is important to weigh the pros and cons of each decision. Negative equity is especially important to consider. Buying a home is a big investment and making it a wise one is important.
Learn more about Highlands NC real estate
Contact me, Lynn Kimball, today for more information on buying and selling Highlands NC homes. I welcome the opportunity to update you on the market while answering all of your questions. Let my knowledge and experience serve as your guide to Highlands NC real estate.
Click here to read “Hey, Buyers: These Home Appraisal Tips Are for You” from HouseLogic.