The Fitzburgh Realty Team - Glassell Park Real Estate - Northeast Los Angeles Realtor
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What is the purpose of an Appraisal?
Does it seems odd that the appraised value just so happens to be "exactly" the amount that you offered for a home? I used to think the same thing but now that I have come to learn more about the appraisal process it actually makes perfect sense to me.

What is the purpose of the appraisal? It is to assure the bank that the loan they are giving you is protected by an asset of adequate value. The appraiser's job is to try to determine "market value" based on comparable sales in the nearby neighborhood. What is "market value?" It is the price that an un-distressed buyer would be willing to pay to an un-distressed seller. The fact that you have a contract with the Seller at a certain purchase price is not insignificant in determining value- you are an un-distressed Buyer that has agreed to pay x dollars to an un-distressed Seller. As long as the appraiser can find comparable sales to support the x dollar price, then who is the appraiser to be better at determining value than you and the Seller? So, it could be that the appraiser might have been able to support a price that is higher than x dollars but since you and the seller agreed to x dollars then x dollars it is. If you had offered more, then maybe the appraised value would have been more. At some point, however, the comparable sales cannot support the purchase price in your offer. For example, if you had offered $850k and the max the comps can support is $775k, then the appraised value would come back at $775k. Again, the appraiser is making sure that the bank does not lend more than 80% of the maximum value that the comps can support.
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 REACH OUT to BRIAN and ZACH DIRECTLY
Brian Fitzburgh, Broker/Owner
Cell: (818) 571-9712
Office: (424) 625-0747

[email protected]
Zach Gaither
Real Estate Agent / Buyer Specialist
Cell: (239) 265-2438
[email protected]
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2022 Zillow Premier 5 Star Agent in Los Angeles. Parrish Ave., Los Angeles, CA. CalDRE# 01875767. Copyright © 2022 Brokers Trust Real Estate Group. All Rights Reserved.
  • Home
  • About Us
    • Fitzburgh Realty Team >
      • Juan Loza Handyman
    • Brians Resume | Sellers
    • Brians Resume | Buyers
    • Testimonials
    • Upcoming Events
  • RE Videos
  • Search Homes
  • Homes Fur All
    • Explore NELA >
      • Glassell Park
    • News
    • Super A Test
    • Bark & Meow Fan Club
    • Concerts in the Park
    • Eagle Rock Bark >
      • ERB Walk At The Bark
      • Eagle Rock Bark 2017
      • Eagle Rock Bark 2018
      • Eagle Rock Bark 2019
    • Glassell Bark >
      • GB Walk At The Bark
      • Glassell Bark 2017
      • Glassell Bark 2018
      • Glassell Bark 2019
    • Glassell Park Easter Egg Hunt
    • GLASSELL PARK TREE LIGHTING >
      • XMAS TREE LIGHTING 2017
      • XMAS TREE LIGHTING 2018
    • Growing Caring Sharing News
    • 4 Weeks 4 Life
    • Fostering Resources
    • Pet Food Drive
    • Pet Resource Guide
    • Pet Adoption Hall of Fame
    • Spread The Word
    • Super Party >
      • Super Party Photos
  • Resources
    • LA Wildfire Resources >
      • Temporary Housing
    • Brian' s Crystal Ball >
      • Brian' s Crystal Ball Appetizer
      • Brian' s Crystal Ball 1st Main
      • Brian' s Crystal Ball 2nd Main
      • Brian' s Crystal Ball Dessert
      • Furball Challenge
    • First Time Homebuyers >
      • Credit Score
      • Down Payment
    • Get Your Loan Pre-Approval
    • Request a Free Market Analysis
    • Mortgage Calculator & Rates
    • How Much House Can I Afford
    • Real Estate Market Trends
    • Neighborhood Search Tools
    • MLS Activity Alert
    • Client Documents & Calendar
    • FAQ
  • Brian's Blog
  • Contact us
    • Coverage Area