What is appraisal?
An appraisal is a licensed appraiser's opinion of a property's value, usually ordered by the lender before approving a mortgage.
In practice
- The appraiser inspects the property and compares it to recent sales.
- If the appraisal comes in below the price, the buyer and seller may renegotiate, the buyer may pay the gap, or an appraisal contingency may let the buyer cancel.
General information, not legal, tax or financial advice. Rules vary by state and MLS.
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