The typical buyer’s offer to purchase a property requires an appraisal value equal or greater than the offering price. The appraisal is ordered by the buyer’s lender, who’s objective should be to protect the investors from buying a loan that is above its market value and the buyer from purchasing a home for more than what it is worth.

Instead of describing local property values in an appraisal as “declining.”, some lenders have pressured appraisers them to change indicate ’stable’ conditions when all the relevant data suggested otherwise. Contrary to the purpose of the appraisal,the seller and loan officer benefit from excesses in property values; the invester and the home buyer lose. Inflated property valuations have contributed to current mortgage-market losses and is a significant contributing factor in many mortgage fraud cases and foreclosures.

But a lower property appraisal can be detrimental to the seller. The deal may fall through, unless the seller is willing to lower the price to the appraised value or the buyer is willing to pay the difference between the property value and the purchase price. If the property valuation is in question, the seller should order its own appraisal and present the results to the buyer’s lender for reconsideration of the property value.

It is important, that for this very reason, the real estate appraiser be reputable, experienced and familiar with the local real estate market and can perform an appraisal which accurately reflects the market value the property.

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