The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
Home Buyers (and Sellers) can be excused for thinking that the purpose of an appraisal — typically, done at the behest of the Buyer’s lender — is to determine the home’s fair market value. Not exactly. Rather, the purpose of the appraisal — at least one done in the context of a home sale —...Read More
The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
From Steep Premium to Discount In the wake of the 2008 Financial Crash, rates on jumbo mortgages (over $417k in most parts of the country) skyrocketed to 7% or even higher. Assuming you could find one. Fast forward to Fall 2015, when jumbo’s can now be had for as little as 3.75% — a slight discount to...Read More
Risk of Not Appraising Borne by Buyer The very rich are different from you and me. –F. Scott Fitzgerald Fitzgerald might have added, “and so are their home transactions.” One of the features of truly upper bracket homes is that the individuals who buy them — by definition — are people of substantial means. If...Read More
