Why Appraisals Are Essential to Real Estate Deals
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Why Appraisals Are Essential to Real Estate Deals
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TRANSCRIPT
Hey! Good afternoon everybody. This is Chris Berger and yes, it’s time for a BergerPoint.
You know being a real estate agent here in the Hudson Valley region as wellas, in the Fort Myers Florida area, one of the things that I discovered is that it’salmost like the misconception of an appraisal of a home.
People are under misconceptions about that because they don’t know exactly what it means or why it’s so important.
Well, the bottom line is that if you’re buying a house for $500,000 and you put 20% down, so you’re just putting $100,000 down, and now your balance is $400,000, but the total package of the house is $500,000.
So it’s very important because when the bank comes in to inspect the property thatit actually has to be appraised for what the bank thinks the selling price of thehouse should be.
Because should you default it doesn’t matter you paid the hundred thousand dollars for a deposit, but should you default they want to make sure that they can resell that house for that five hundred thousand mark.
And that’s why the appraisal is so important.Now, sometimes when a house does not meet those expectations, say it only appraised out at four hundred and eighty thousand.
Well again, I’ve had the experience when I went back to the seller and said,look, my buyer cannot get a mortgage because the house does not appraise out.
So they thought about it for a few days, realized what they had to do.
They came down to twenty thousand.We completed our deal.
My buyer was happy.In reality, the seller did get what he wanted.So that’s why the appraisal is so important.
https://bergerpoints.com
Welcome to Berger Points! Chris Berger - Real Estate Agent - Home Renovator & Property Manager sharing my 40+ years experience.
Licensed in NY, FL & CT. -- Yankees fan. Concert goer. Dog lover. Grandfather.
bergerpoints.com
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