Videos

Why Homebuyers Need an Appraisal

If you’re buying a home, you will likely need an appraisal.

Typically, your mortgage lender will hire an appraiser to make sure the home you hope to purchase is priced fairly. This protects the buyer and the lender.

The appraiser will look at recent sales of similar properties in the area to make sure the price appears to be reasonable. This ensures you’re not overpaying for the property.

If the appraisal comes in lower than the agreed-upon purchase price, buyers may be able to negotiate with the sellers to see if they will lower the price.

“Many buyers use that as a tool to go back to the seller,” said Daniel Hernandez, vice president, international, Realty One Group. He is based in Windermere, Fla. “Are you willing to lower the appraisal price or negotiate?”