Many people think that the selling price of their home is firmly established when the amount they are willing to accept equals the amount the buyer is willing to pay. Seems simple .... you sell, the other guy buys .... both of you are happy. But there is an another element in the drama of determining the selling price of a home.
Mortgage lenders' can hire an appraiser to give an independent opinion of the value of a property. If the appraised value is less that the selling price, the REALTOR® who is selling on your behalf has the opportunity to defend your price. The agent can identify similar homes, which have sold for the same price, or establish comparable prices for homes in your neighbourhood.
If the REALTORS® appeal is not successful, both buyer and seller may have to enter into careful negotiations to make the sale work. The seller may be asked to reduce the price or the buyer is required to increase the down payment.