A home purchase is the largest single investment most people will ever make. Whether it's a primary residence, a second vacation home or an investment, the purchase of real estate is a complex financial transaction that requires multiple parties to pull it all off.
The sale is usually handled by the Realtor. Financial capital to fund the transaction is provided by the bank, credit union or Mortgage Company. The title company ensures that all aspects of the transaction are completed and that a clear title passes from the seller to the buyer.
But who ensures that the value of the property is in line with the asking price or selling price?
This is where the appraisal comes in. An appraisal is an objective estimate of what a buyer might expect to pay – or a seller receive – for a parcel of real estate, where both buyer and seller are informed parties. A licensed or certified appraiser will provide the most accurate estimate of the true value of their property, thus ensuring both buyer and seller are making an informed decision.