What does a home appraisal determine, and who typically orders it?
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Explanation
An appraisal is an independent, professional estimate of a property's fair market value ordered by the lender (typically at the buyer's expense). If the appraisal comes in below the purchase price, the lender will only finance based on the appraised value, which can create an 'appraisal gap' that must be negotiated between buyer and seller.
Understanding the local housing market, including comparable property values and trends, is essential whether you are buying, selling, or investing in real estate.