Many assume the real estate appraisal process is an exact science, but it’s far from perfect. 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 and can arrive at a higher or lower home value.
How the Real Estate Appraisal Process Works
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.