Highlands NC Real Estate, Understanding Appraisals
Meadows Mountain Realty, Highlands NC real estate
Understanding appraisals can help a Highlands NC real estate transaction run more smoothly. An appraisal is an important part of most contracts when purchasing real estate. This is necessary when financing is involved and wise for anyone paying cash for a property. The appraisal will determine the fair market value of a property and lenders require an appraisal to ensure the home is worth the loan amount being financed. The appraiser will assess the property’s condition, comparable sales, and market trends to provide an unbiased valuation of a Highlands NC property.
Contingency
Most real estate contracts will include an appraisal contingency. This protects buyers if the appraised value comes in lower than the agreed upon purchase price. If an appraisal comes in low, the buyer can renegotiate the price, cover the difference in cash, or, in some cases, walk away without penalty. This clause is especially important in competitive markets where bidding wars might push prices above actual market value.
What if the seller disagrees with the appraisal?
A seller may challenge a low appraisal of a Highlands NC property for sale by providing additional comparable sales or requesting a second opinion. If an appraisal gap exists, buyers and sellers often negotiate a compromise, such as splitting the difference or adjusting closing costs. Ultimately, the appraisal process safeguards both buyers and lenders from overpaying for a property.
Learn more about Highlands NC real estate
Contact our Berkshire Hathaway HomeServices Meadows Mountain Realty team today to learn more about buying and selling real estate in Highlands NC. We welcome the opportunity to update you on the market while answering all of your questions. Let our knowledge and experience serve as your guide to Highlands NC real estate.