NEW ORLEANS, Nov. 10 /PRNewswire/ -- In today's transitioning realestate marketplace, pricing a home properly is one of the biggestchallenges that sellers face. Providing accurate property valuations inthis environment can be complicated, as well.
In the session, "The Low Appraisal: Recourses and Remedies," today atthe 2006 REALTORS(R) Conference & Expo here, a panel of experts toldRealtors(R) how to handle a transaction in which a buyer and seller agreeon a sales price that's higher than the home's appraised value.
For consumers, appraisals are an often unnoticed but essential part ofthe home buying or refinancing process. Most lenders require propertyappraisals when granting mortgages to ensure that they are not lending morethan a home's value. Appraisals also protect buyers by preventing them frompaying too much for a home. High appraisals can sometimes be an indicationof mortgage fraud, which has already resulted in $546 million in losses inthe first half of 2006, according to the Federal Bureau of Investigation.Low appraisals can prevent buyers from getting a mortgage and inhibit ahome sale.
The National Association of Realtors(R) represents about 30,000 state-licensed and certified appraisers throughout the country. NAR recommendsthat lenders be required to inform borrowers of the methods used to value aproperty to determine the amount of the mortgage loan, and that borrowershave the right to obtain a copy of all value estimates or value opinions onthe property.
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