An appraisers job is to determine the fa…. (seattle public schools)
February 7th, 2010
An appraisers job is to determine the fair market value of your home based on guidelines set out by the Federal National Mortgage Association.
The sales comparison method uses the similar properties to make several estimates of what they would have sold for if they had the same feature as the property in question.
If the appraisal amount is less than the mortgage amount, the lender might decide that the property is being sold at too high of a price for the worth of the property and not allow the buyer to acquire the loan.
Home value estimates may be at times inflated slightly (anything from two to 10 percent) to give scope for leeway in negotiations.
In this method, the appraiser estimates the costs involved in replacement of the structure if it were to be destroyed.
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