Story by Melissa Rudy
For the vast majority of home sales, the buyer seeks financing from a bank. In that case, the lender will require an appraisal of the property, and the fair market value must match or exceed the amount of the loan. If the home appraisal comes in low, that can potentially put the deal in jeopardy.
…John Brenan, chief appraiser at Clear Capital, a Nevada-based financial services firm, echoes that 10% estimate. Certified general real estate appraiser Mason Spurgeon estimates that about 20%, or one in five appraisals, come in lower than the sale price.