Appraisal

Definition

The process where a stranger with a clipboard determines how much your house is worth, and it's always either too high for the buyer or too low for the seller. Nobody has ever been happy with an appraisal in the history of real estate.

Example Usage

"The appraisal came in $30K under our agreed price. The appraiser clearly didn't factor in my emotional attachment and the $8,000 I spent on landscaping." - A seller in denial

Related Terms

Advanced

gift of equity

When a seller (usually a family member) sells a property below market value and treats the difference as a down payment gift. It's nepotism in real estate form, and the IRS has feelings about it.

🏠 Real Estate

Intermediate

rent-back agreement

An arrangement where sellers continue renting their former home from buyers after closing, usually for a short period. It's the awkward transition period where you're both landlord and confused.

🏠 Real Estate

Advanced

subordination agreement

A contract where one lien holder agrees to take a backseat to another in the priority line for getting paid if things go sideways, voluntarily accepting second-class status. It's cutting in line, but in reverse and with lawyers involved.

🏠 Real Estate

Beginner

prorations

The closing day arithmetic splitting property expenses and income between buyer and seller based on ownership periods. It's the financial equivalent of splitting a restaurant check by who ordered what.

🏠 Real Estate

Beginner

Lot Size

The amount of land your property sits on, which matters a lot until you realize most of it is a setback you can't build on anyway. It's the real estate equivalent of buying a large popcorn that's mostly air.

🏠 Real Estate

Intermediate

debt-to-income ratio

The percentage of your gross monthly income that goes toward debt payments, used by lenders to determine if you can afford a mortgage. It's basically a mathematical judgment of your life choices.

🏠 Real Estate

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