Your Home Purchase “Protection”

In the after-glow of having your offer accepted, are you now worried that you might be paying too much for your new home? Even if you carefully study the market, (homes for sale and those that have sold), there are a lot of outside factors that can ultimately influence the final sale price of a property: the economy, interest rates, time of year, location, condition of the home and more.

If you’re obtaining a new loan, your lender will require an appraisal of the property conducted by a State Certified Appraiser before your loan can be issued. The appraiser’s job is to establish the fair market value of your property which will ultimately protect you from paying too much.

Lenders want to be sure that you don’t over-pay – and they definitely do not want to lend more than the property is worth! If the property’s contract price does not meet the appraised value, you then have the option, per contract, to re-negotiate the purchase price, pay the difference out of pocket or void the contract agreement and receive a refund of your earnest money deposit.