addendums, or “addenda,” help the federal housing administration (fha) protect fha buyers and the agency itself. lenders that approve and make loans for the fha ensure that buyers, sellers and their agents sign specific addendums to the purchase contract. they protect the fha buyer and lender from misrepresentations and can also protect a buyer’s deposit. an appraisal is a professional opinion of value based on comparable sales in the area and sometimes comes in lower than the sale price on a purchase agreement. it helps the lender protect its financial interests and can give the buyer peace of mind that a home is worth at least the amount they’ve agreed to pay. it also prohibits the seller from charging a penalty to the buyer if the appraised value is lower than the purchase contract price. it certifies that everyone signing honors all of the terms and conditions of the purchase agreement to the best of their knowledge.