The successful sale of a home is usually predicated on the buyer getting financing to pay for the property. And in those cases, the buyer is somewhat at the mercy of an appraiser to complete the deal. Why?
An appraisal estimates the market value of the home to protect the lender’s position. A financial institution will not provide a loan to buyers for more than the home’s worth or the lender runs the risk of never regaining the market value of the property should foreclosure become necessary. “Market value” is not to be confused with “market price,” which is the price actually paid on the home.
Sourced through Scoop.it from: willspringerrealtor.com