When selling property in a market where homes are in demand and prices are high, sellers can become carried away by the chance to make a huge profit, and make the mistake of overpricing their homes.  Sellers may think, “what is wrong with making as much as I can on the sale of my home?”  The answer lies within the mortgage loan process.

Lenders who are financing a mortgage loan will have the property appraised to ensure that it is worth what they will be loaning the buyer to make the purchase.  If the appraisal comes in at less than a seller’s asking price, the lender associates a greater level of risk with the loan.  In case the buyer defaults, the lender will not be able to recover the loss. Many lenders refuse to make the loan if the appraisal does not match the offer.

Before you can list your property for sale you may want to have a professional appraiser determine its real value, so your asking price is reasonable.