The How and Why of Home Appraisals
There's no question that the housing market this year has been upended. Low inventory and high demand have created bidding wars the likes of which we've never seen, and buyers are being forced to waive contingencies that offer protection in the home buying process. One of these protections is the home appraisal. According to HomeLight , issues with the appraisal accounted for 27% of delayed contracts, and 14% of terminated contracts as of July 2021. Though the market may try to force buyers to push the appraisal away and pay with cash, it's important to understand the appraisal process and consider it carefully. What is a home appraisal? According to NerdWallet , a home appraisal is an estimation of the home's value, as determined by a licensed appraiser. The appraiser will look at features of the home as well as the values of homes nearby to determine the home's true value. Mortgage lenders require these appraisals to ensure that they are lending the proper am