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Watch For Home Appraisal Red Flags





Since there is a lot of uncertainty in the housing market now, it is even more important to pay attention to the appraisal process -- you don't want to be the last one to hold the bag.

From MarketWatch:

Appraisals are a key part of just about any residential real-estate deal, but the world of appraisals is not without its scandals. Phony appraisals are often a problem in mortgage-fraud cases, where a group of scammers will pose as legitimate real-estate professionals, hiking up a property's price to turn a quick profit.

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Of course, usually the lender hires the appraiser. But, whether you're a buyer or seller, you can scan the appraisal for these red flags:

- Does the stated home value seem reasonable, given what you know about the neighborhood?
- When the appraiser cites comparable home sales, is he focusing on nearby houses?
- Does the appraisers' description of the house match what you know?
- Will the lender give you a copy of the appraisal?
- Is the appraiser licensed and/or certified?

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