Flipping America

Quick question: What is a property worth? Answer: What someone is willing to pay for it. That answer is truthful, but it doesn’t always end up being “correct.” That’s because few people pay cash for real estate. When you borrow money the lender is going to protect their interests by ordering an appraisal. They will contact a licensed appraiser who will examine the property, compare it to nearby similar properties for sale or that have been sold, and will prepare a report that reflects his or her opinion of value. Although it is an opinion, it carries weight with the lender. In fact the lender will almost completely disregard what the buyer is willing to pay for the property if the appraiser has a different opinion.   This makes the appraiser an important piece of the puzzle. And it’s a piece over which you have no control. I was in this business when we could still choose an appraiser and I watched them get pressured into justifying higher prices than should have been reasonable. Since the collapse of 2008 an