It hit me the other day that some people don't realize how important a home appraisal is in the entire home selling process. This is a new world of real estate. If someone falls totally in love with your home and buys it at a 2005 price, it may seem good at first, but trouble awaits. If the appraiser can't back up that 2005 price, the mortgage company won't lend you all the money you need. Here's an interesting article about appraisals:

Why Is A Property Appraiser Important To The Home Buying Process?

It doesn't matter what part of the home buying process you are a part of - the buyer or the seller - a real estate appraiser is important to you and necessary to the home transaction. An impartial appraiser will come in and check out the home and property and come up with true value. The appraiser does this in order to protect the seller, buyer and lender, all of whom are involved in a home purchase. Here are some reasons why real estate appraisers are important.

Discovery of the True Value of a Property

A seller will naturally want to take the home and promote how much it is worth. That's because it will make for a higher selling price, which if it works out for the seller will be more than what was paid for the home. For a buyer, there is a desire for the knowledge that the price is right. And the lender wants that true value to know that the money loaned out is worth it and it is a good business move for them to fund. If a true value was to come in lower, then it might not make for a good business deal for the lender, especially if the home may not sell for a profit in the future.

With the impartiality of the appraiser, all parties can expect an honest finding of the value of the property, which is based on its neighborhood, its market, its improvements and the size of the home.

How it Works for the Buyer

If you are the prospective buyer, you will want to make sure you are getting something of real worth in your new home. With the appraisal, you get to see what that fair price is and from there you can decide if you want to spend money on it. If not, you can always reconsider what you want to pay for the property and could decide not to make the deal.

How it Works for the Seller

If you are a prospective seller, you want to discover the value of your home so you can make a fair selling price for your property when you put it out into the market. If you have a low valued home, you may change the cost of the home or make more improvements in order to increase the value.

How it Works for the Lender

As the lender, the bank is making a gamble by lending money to the prospective buyer. To the lender, determining the value of a home will enable the best possible contract with the buyer. Instead of giving money to the buyer for the price they paid, the lender knows the entire value of the home and can then assess the risk.

And that's where the role of the appraiser comes in - assuring that the property's value is right for all involved. Without the home appraiser, the true value won't be known, which impacts all of the parties who are touched.

Taken from:http://www.streetdirectory.com/