How the Real Estate Appraisal Process Works
Many assume the real estate appraisal process is an exact science, but it’s far from perfect. However, in reality, appraisals are based on an individual appraiser’s interpretation of market data, which isn’t always as precise as buyers and sellers might hope.
Appraisals are one of the biggest wild cards in a real estate transaction. While most sellers and agents focus on a buyer’s financing strength, few consider how the lender selects an appraiser and what that means for the deal.
While the real estate appraisal process serves an important role in the lending process, their accuracy can vary depending on who conducts the appraisal, how familiar they are with the local market, and the process by which they were assigned. In some cases, a poorly matched appraiser can create unnecessary roadblocks—even when the agreed purchase price is fully supported by market conditions.
