An appraisal refers to the determination of a property’s value by a qualified appraiser.
It must be noted that an appraised value has nothing to do with market value or a seller’s asking price.
It is just an opinion of an appraiser of what the estimated property value is.
Even though transaction prices can occur above or below the appraised value, banks often based a mortgages’s loan to value on it.
So it still plays an important role in in the home buying process.
Very often, appraisers appraise properties based on the selling price. This practice is especially predominant in the new condo sales market.
Because appraisers are professionals, they do charge a fee.
This fee is usually borne by the borrower. If a lender is waiving it, it only means that they have likely accounted for it in the interest rate on the loan or make up part of the closing costs.
One cannot expect banks to be charitable.
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