Prior to making an offer, your agent should have discussed with you the home values for the area and presented a comparable sales analysis (CMA) for you to review prior to deciding on the price you would like to offer. These reports are used by Realtors to evaluate market conditions, understand pricing trends, and pinpoint the value of the subject property. Once you are in contract, and appraiser will be contracted to perform an appraisal on the property.
The California Association of Realtors defines an appraisal as: "An opinion of the market value of a home expressed by a real estate appraiser."
Regardless of whether you have included an appraisal contingency, it is important to remember two things:
1. The appraisal is an OPINION of value…