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If a home is overvalued due to
pressure being applied on the appraiser, this can lead
to mortgage fraud. Appraisers can come under enormous
pressure from clients, mortgage brokers and realty agents
to appraise a home to a predetermined value. The buyer
may end up having negative equity in the home as a result.
The appraiser must act ethically and report an unbiased
opinion of value.
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