Mistake # 3 - What Happens When The Home You’re Buying APPRAISES For LESS Than You Offered?

What Happens When The Home You’re Buying APPRAISES For LESS Than You Offered? The answer is quite simple, either pay the difference in cash or find another home. In the self published book, Make No Mistakes About Buying Real Estate, the authors discuss the emotions involved in purchasing. That is you can easily set yourself up for a major mistake because your emotions of wanting a particular home so bad blurs your logic and practical sense. However, it’s always best that you look at a home as a business opportunity if you plan to one day use the equity and appreciation for another property or something else. When an appraisal is done by the lender the appraiser is looking for comparable properties similar to the property you are interested in purchasing. They take into consideration number of bedrooms, baths and square footage of the property as well as other upgrades to the home. These differences whether they help to increase value or decrease are called the adjustments. Be careful to review them. Often times the appraiser can be encouraged to increase the values of the home in order to make the deal work. The problem with this is that you as the buyer end up paying more than the house is truly valued for. Get the facts at http://www.makenomistakes.com/.