Why are appraisals important?

When you are financing a property, it's verry likely the lender will have an appraisal done in their underwriting process. This is done to ensure that the value of the property is correct and that a buyer is not overpaying based on current market data. It protects both the buyer and the lender. Some cash buyers also choose to have an appraisal done (not very common) to add a layer of protection on their end.

Think of an appraisal as the unbiased judge of your property—why? Because both you and the lender WANT to and are motivated to get the deal done because that's how we all make money . The appraiser's job is to act as our sanity check and make sure we don't get too excited and make a bad decision.

Lenders want independent evaluations: Certified professionals, not someone with no expertise, to crunch the numbers and give an honest value based on current real market data. No bias—just facts.

That are standardized and reliable: They use proven methods and data models—kind of like the GPS for property valuation—so everyone’s on the same page, especially big money folks.

With the appraisal, clients can make wise financial decisions. An appraisal aims to capture the value of your property today with TODAY's comps - imagine waving a magic wand and having your project be instantaneously completed and going on market NOW. That's what an appraisal measures - so yes, you may very well sell the property for more (or less) in 12 months. No one has a crystal ball we can only work with what we know today.

Appraisals have been around and will continue to be an important factor in real estate moving forward. In the unlikely event an appraisal may become an issue for you or someone you know, please let me know and I would love to help. I have several ways to work with appraisers and find solutions in these rare circumstances.