The appraisal is a step in the process of buying Highlands luxury real estate, as it is with most real estate transactions. Appraisals are rarely left out of the contractual process as they serve as an insurance of sorts for the buyer. A buyer understandably would like to make sure that he is paying fair market value for a home. The problem with an appraisal occurs when the value comes in at less than the contracted price for a Highlands property.
A low appraisal is a problem when it comes to a mortgage because a lender will typically only lend on what he sees as the true value for a home. While a Highlands home is truly only worth what someone is willing to pay a buyer can only borrow what a lender is willing to lend. When an appraisal come in low a buyer is faced with two choices: to walk away from the deal or accept and pay the difference. Appraisals tend to come in lower more frequently for luxury homes because there are fewer comparisons available.
Contact us today to learn more about buying Highlands luxury homes. There are some fantastic properties currently listed for sale and we can help recommend reputable lenders familiar with our area. our goal is to help our clients achieve success with their real estate transactions.
Click here to read “The Appraisal Betrayal” from the Wall Street Journal.