Many sellers think that the
sales price of their home is determined entirely by what they are willing to accept and
what the buyer is willing to pay. There is another variable that can complicate
the sale of a home--the lender's appraisal.
To protect the interest of their investors, the
mortgage lender's broker hires an appraiser to give an independent and objective evaluation
of what the property or home is worth. If the appraised value is lower than the selling
price, the seller will be glad that he has enlisted the services of a
professional and experienced real estate agent. The agent can give the appraiser information about
neighboring homes that have sold recently that support the seller's price. If an
appeal to the appraiser is unsuccessful, some negotiations may
follow. Both the seller and buyer may have to make concessions to make the
transaction go through. The bank may ask the buyers to increase their down payment or the buyers may
ask the sellers for a drop in price.