Inflated appraisal can leave homeowner deflated
I’m in the middle of trying to buy a condo. So far, two appraisals have been made. The first came back “inaccurate” and was $5,000 less than the second one. Why the disparity? How does this affect me as a buyer?
It might be that the first appraisal was the more accurate of the two, but your bank would not accept it because a loan for that amount is less profitable. And that sounds harsh. But it’s becoming all too common as some lenders and agents pressure appraisers to overstate the value of a home so that they can make their numbers work a little better on a deal. Why is that? Well, if they don’t, the deal doesn’t get approved and they don’t get their commissions!
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