The home appraisal comes in above the buyer's offered price, indicating that the property's appraised value is higher than what the buyer agreed to pay. In this case, the buyer may feel reassured about the equity in their purchase and can proceed with the transaction without major concerns. The lender is likely to be comfortable with the loan amount, and the sale can proceed smoothly. appraisal process A home appraisal is a professional assessment conducted by a licensed appraiser to determine the fair market value of a property. Scenario 1 Home Appraisal Above Offer Price: In this scenario, the home appraisal returns with a value below the buyer's offered price, signaling that the property is appraised at a lower market value. This situation can pose challenges, as the buyer's lender may be hesitant to approve a loan amount that exceeds the appraised value. The buyer and seller may need to renegotiate the purchase price, with the buyer potentially needing to bring additional funds to meet the lender's requirements, or the parties may explore other solutions such as reevaluating the terms of the sale. Scenario 2 Home Appraisal Below Offer Price:
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