How Appraisals Affect Ohio Real Estate

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A property appraisal is performed by an objective, third-party appraiser. When an appraisal is performed in a real estate transaction, it's ordered by the buyer’s lender. This ensures the house costs, at least, the amount of money the buyer will be lent. Often, the appraiser examines properties that have recently sold locally. However, there are a few problems with the appraisal process.

• The comparable sales are from the past. In our appreciating market, some values come in short because prices increase.
• Appraisers are human. They’re prone to mistakes.

• Internet lenders may hire an unqualified appraiser. They might hire someone that isn’t familiar with the neighborhood, for instance.
• The mortgage industry is incredibly conservative. Increased government regulation has increased scrutiny on sales. This includes additional repairs or inspections that delay the process or pose financial burdens for both buyers and sellers.

Despite a low-value appraisal, it still might make sense to buy a property. It’s important to openly communicate with your Realtor to weigh your options and understand any possible complications. If you have any questions, please contact me. I'm always available to help!