A home purchase is typically the largest investment someone will make. If you’re planning to buy a home, an appraisal is an important step in the process, if you are using financing. An appraisal is a professional evaluation of the market value of the home you’d like to purchase. An appraisal is typically ordered by the lender to confirm or verify the value of the home prior to lending you the money to purchase it. When you apply for a mortgage, an unbiased appraisal is the best way to confirm the value of the home based on the sales price. This will help make sure that the bank isn’t lending you more than the home is worth. Appraisals are especially critical in today’s seller’s market where the inventory is so low, it is driving home prices up, resulting in bidding wars. With a market like this, it gives a seller the impression that they can price their house at whatever they want because they are under the assumption that competing buyers will be willing to pay more; but keep in mind, the home still has to appraise and lender will only allow the buyer to borrow based on the value of the home.

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