Buying a Home in Salt Lake City, UT

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Who Does the Appraisal REALLY Protect?

Most Utah Homebuyers believe that the appraisal is being done to protect the Buyer. Although it may ultimately do so, the appraisal is really to protect the lender.

Appraisers are hired to protect the Buyer's lender(s). A main part of their job is to determine if there is enough collateral value in the property to protect the lender's lien-holder position.

In some markets, appraisals may be routinely performed before presenting offers. In Utah, it is more common to order an appraisal after a contract price has already been agreed to. In this case, most Buyers will include an appraisal contingency in their offer, allowing them to have the option of cancelling the contract (and getting back their earnest money) in the event the home appraises for less than the contract price.

Buyers should not rely on a past appraisal value in determining how much they will pay for a property. Sellers or their agents will sometimes promote that a property was recently appraised for thousands (or tens of thousands) more than the asking price. An appraisal which was done for the purpose of securing a home-equity or consolidation loan is different from an appraisal which considers the value of a property to secure a first mortgage. At any rate, that is a topic for another discussion.

As your Exclusive Buyers Agent, we will help you determine fair market value before writing an offer on a property. Our goal as your representative is to protect YOU and your best interest ONLY...

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

©2007 Homebuyer Representation, Inc.

Comment balloon 9 commentsBenjamin Clark • May 17 2007 11:21AM
Who Does the Appraisal REALLY Protect?
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Most Utah Homebuyers believe that the appraisal is being done to protect the Buyer. Although it may ultimately do so, the appraisal is really to protect the lender Appraisers are hired to protect the Buyer's lender(s) A main part of their job is… more
The Appraisal Contingency
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In Utah, THE APPRAISAL CONTINGENCY allows a Buyer to cancel the contract and have their Earnest Money returned, if the property under contract appraises for less than the contractually agreed price. This contingency has deadlines by which the… more
Does Your Offer Have a Financing Contingency?
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In Utah, THE FINANCING CONTINGENCY in an offer is a protection to the Buyer if their financing falls through. It allows the Buyer to cancel the contract without forfeiting their Earnest Money. If not included in the offer, and the Buyer's financing… more
How Earnest Money Protects the Buyer
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Most people think of Earnest Money only as a protection for the Seller. In some cases a Buyer gets cold feet. Other times, a Buyer ties up the property and is ultimately unable to perform after all contingencies have passed. The Earnest Money is… more
Determining How Much Earnest Money to Put Down
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Let's Talk More about Earnest Money… DETERMINING HOW MUCH EARNEST MONEY TO PUT DOWN when making an initial offer. (Very Important) The amount of Earnest Money you include with your offer is important because it can create advantages or… more
What is Earnest Money?
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You have seen the available homes on the market that fit your budget and match your criteria and have decided on the one you want to make an offer on. GREAT! In Utah, in order for your offer to be valid it is required to be backed by "good and… more
FTC Consumer Alert - Buying a Home: It's a Big Deal
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FTC Consumer Alert - Buying a Home: It's a Big Deal The Federal Trade Commission just released a Consumer Alert (May 2007) titled "Buying a Home: It's a Big Deal. " It can be accessed here: http://ftc. gov/bc/edu/pubs/consumer/alerts… more
Your Credit Might Not Be As Bad As You Think
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Many buyers in the Salt Lake City, Utah area have been unsure of their standing in the credit department. This has led them to agree to pay a higher interest rate, convinced that they should, when in reality, their credit may not have been low… more
How to Know About the Newest Homes on the Market Each Day
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Get Technology Working For You With our Preferred Buyer Search, Salt Lake City Area Buyers help us program our database to search the entire inventory of listed homes for sale. Our computers will easily find the homes that match YOUR specifications… more
CNN Money - Spring home-buying guide: 6 ways to do it right
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Breaking News! CNN Money just posted their Spring Home-Buying Guide for Spring 2007! The link is: CNN Money - Spring Home-Buying Guide: 6 ways to do it right They say to get pre-approved first, shop at least 4 or 5 lenders, work with an agent who… more
Different Types of Agents - Say What?
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A VERY Brief Explanation of Different Types of Agents in Utah Listing or Seller's Agent: Sometimes referred to as a "traditional agent", the most common real estate agent works on behalf of the Seller and represents their interests… more
Which Loan is REALLY the Best?
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With so many lenders, loan types and loan programs, how can you REALLY know which loan is best? At Homebuyer Representation, our Exclusive Buyers Agents can assist you in looking at your financing options and possible sources of financing. We are… more
The wrong mortgage can cost thousands of dollars in needless fees,…
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The wrong mortgage can cost thousands of dollars in needless fees, interest and other costs. Many lenders have a handful of loan types that they use with almost all of their customers. You may qualify for special programs, but never hear of them… more
Why Loan Pre-Qualification Isn't Good Enough
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Utah Homebuyers should be Pre-Approved BEFORE they make an offer. We strongly recommend that all our clients get Pre-Approved for a mortgage so they know in advance exactly how much you can afford and that their loan will go through. It also adds… more
Buying a Home (Smarter, not Harder)
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Utah's smartest homebuyers have found that the best way to buy a home is to make sure the agent working for them, works ONLY for them! Think about it: In Utah, the Seller's Agent is bound to get the Seller the best price and terms. Can the Seller's… more
Why is Signing a Buyer-Agency Agreement That Important?
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Our Buyer-Agency Agreement requires us to be legally responsible and accountable to you. A Seller's agent, by law, must work in the best interest of their client, including giving any learned information about the Buyers to the Sellers. This can… more
Three Good Reasons to Use an Exclusive Buyers Agent (EBA)
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1. You Become A Client, Not A Customer Without the benefits of using Homebuyer Representation as your Exclusive Buyers Agent, you become just a customer to the Seller and their agent. According to the National Association of Realtors, "As a… more
I have the best clients!
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I had to post some comments from recent clients. I have also posted them to my Testimonial Page Thanks Clients! I really enjoy working with you too! "We wanted someone who would work with us and not be constrained or biased by their own… more