Property Appraisal

A determination of the value of something, such as jewelry, stock, or, in this case, the house you plan to buy. A professional appraiser — who should be a qualified, disinterested specialist in real estate appraisals, with expertise in the local geographic area — makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property. Your bank or other lender will require the appraisal in order to ascertain the worth of the house for lending purposes. And, unfortunately, the lender may refuse to fund the loan if the appraisal comes in lower than the loan amount. In such situations, if you can’t come up with additional down payment money or a better appraisal, deals have been known to fall through.