Working With Appraisers
After the buyer and seller come to a "meeting of the minds" on the price of a house, there is one more person who must be convinced that the house is worth the selling price--the mortgage company''s appraiser.

The appraiser looks for three similar houses that have sold in the same area within the last six or so months, and compares the selling prices of these homes with the one you are buying. They make adjustments to account for the differences in each property, and the price for your house will be the average of the adjusted prices of the other three homes. In subdivisions or condominium projects where there are many similar properties and plenty of recent sales, the appraiser''s job is fairly easy. In neighborhoods of older homes that have been renovated or remodeled over the years, it can be like comparing apples and oranges.

If the appraiser''s evaluation is lower than the selling price, it can threaten the transaction if the lender declines the buyer''s loan based on the appraisal. In that case, a knowledgeable Realtor can sometimes work with the appraiser to make the transaction work.