Don’t rely on the lender’s appraiser or your real estate agent to protect you

Every real estate investor would do well to remember the old adage, “No one cares more about your money than you.”

Don’t get stuck with a property that’s worth less than you paid for it

Your mortgage lender doesn’t necessarily care if you pay more than the property is worth. Why? Because if you were to default, they are protected. Your down payment gives them a very big margin for error.

The fact is, commercial mortgage lenders want to make loans – that’s how they make money. But just because a deal makes sense for them, doesn’t necessarily mean it’s a good deal for you.

The appraiser they send works for them, not you. Don’t rely on them to determine if you are overpaying.

Only your appraiser is truly unbiased

Think about it. If you just consider incentives and human nature, it’s pretty obvious.

Your appraiser gets paid to do just one thing – to give you his honest opinion based on market data and his experience. His sole motivation is to do his job properly and tell you what the property is actually worth.

On the other hand, your real estate agent’s job is to get you to buy something, anything…and to do it as quickly as possible. Time is money, and they don’t get paid unless you buy.

Hiring your own independent real estate appraiser will give you the unbiased information and advice you need so you can make the right purchasing decision.