Appraisal Needed to Establish Greenville Home Market Price

Don't confuse a comparative market analysis, or CMA, with an appraisal. A CMA is a sales report based on data entered into the multiple listing service, or MLS. In Greenville and other places, real estate agents use CMAs to help their clients determine realistic asking and offering prices.

Appraisals are detailed reports complied by licensed appraisers. An appraisal is the only valuation report a lender considers when deciding whether to lend the money. The seller of a property may want to order an appraisal before listing the property in Eastern North Carolina.

Of course the cost of the appraisal is always a deterrent especially if the seller knows that a buyer will pay for it when applying for a loan but the appraisal is often justified. The seller could lose a sale if the property appraised for less than the sale price when appraised by the appraiser.

Generally, individuals applying for a loan are only interested in obtaining the loan and unfortunately are often not worried about the prudence of buying the property at the agreed price. In fact many purchasers will try to encourage appraisers to increase the appraised value so that they can purchase the home regardless of its value.

Also, an appraisal is also not the same thing as a home inspection. Home inspectors test appliances and outlets, check the plumbing and confirm that a home's heating and cooling system is working. Such information is helpful for the buyer to know before moving in. An appraiser, however, is only concerned with valuating a home in Greenville and Eastern North Carolina.