So, the question stands – “Can you offer more, if you want to pay cash, than the appraised amount of a property?” Yes you can, but why would you want to?
An appraiser, represents larger interests than your own, namely – the Bank that is loaning you the money. They may love you, even care about you are also might be grateful to you for using the bank who is their employer – but they have a “higher calling”. They love their employer more – They don’t ever want it said, with one of their appraisals, that they are being too liberal in their numbers.
That is why the banks have more than one level of review when it comes to checking the “appraisers work”. In the past, the apprasers used to hold all of the power. Their apprasial report used to the the “final word”.
Some types of lenders appraisers are known in the industry as being very conservative. Such is the case with VA appraisers. In fact, the VA appraisers reputation is viewed as being so “tight” they are typically the last loan chosen and only if there is nothing else on the table.
Today, the process is much different. Most banks have at least one “additional” level of review when to comes to verifying the appraisers report. Some have two. If there is something that is not correct on the appraisal report, the appraiser gets called on it and potentially fired. No appraiser want’s that!
However, that makes the Buyer Much More Safe when it comes to buying real estate. Think of it this way, the banks don’t become banks when they make bad investments. While some banks have survived making the “bad investments”, they would rather not 🙂
Here is a bit of information about Bom’d Properties. This is when a property that was for sale has an appraisal glitch or if a buyer decides not to buy. Check it out and please let us know how we can help you with your real estate.