So why does the bank require an appraisal? They want to make sure that you’re not overpaying, that it’s zoned correctly, that there aren’t any additions or conditions on the property that are unsafe, and they want to evaluate the resale possibilities in the event that you default on your loan. When a bank is loaning out a large sum (like a mortgage) they have to make sure that their financial outlay can be covered in a worst-case scenario (like a default). Where people run into problems with an appraisal is when the seller may be asking for a higher price, and then giving the buyer concessions. This is super common in the type of market like we have right now, with low inventory and bidding wars. Homes are often selling over asking price, and quickly. Sp what do you do if the property you’re purchasing does NOT appraise at the purchase price? If you have any questions and/or want to join me on this journey, be sure to join our SMART Steps community on Facebook! 👇👇👇 ...480-818-6222 👉Instagram @lizyirvine 🎙Check out our Smart Cents podcast for weekly market updates 👉Text "LIZY" to 21000 for text updates on our market podcast