1,057,254
NO there is no industry policy. And we've had them come in above contract!
You know what the deal is? The appraiser's job is to confirm or deny that the purchase price reflects the market value of the property and some of them take that quite literally. LOL
Just be glad it came in at value and not below! That happens too!
-
Carol Williams
Wenatchee, WA
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Roy Kelley
Gaithersburg, MD
-
Peter Testa
Danbury, CT
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Mary Yonkers
Erie, PA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kasey & John Boles
Boise, ID
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
956,722
That's common, the appraiser is validating that the value, based on comparables is inline with the offer, that's all that's needed! Like Ron and Alexandra Seigel said, go celebrate!
-
Carol Williams
Wenatchee, WA
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
John Pusa
Glendale, CA
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Kasey & John Boles
Boise, ID
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
4,904,820
They come in at contract price, below contract price and above contract price. This is an opinion of market value, on that particular day by that particular appraiser. It's not an exact science.
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
John Juarez
Fremont, CA
-
Mary Yonkers
Erie, PA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kasey & John Boles
Boise, ID
-
Bob "RealMan" Timm
Minot, ND
-
Barbara Todaro
Franklin, MA
-
Pete Xavier
Pacific Palisades, CA
-
Candice A. Donofrio
Fort Mohave, AZ
5,256,911
That is the norm in the Charlotte area. My take is that if they can prove the value to the price on the Contract, they do. Otherwise, if they can't prove the Contract price, the appraisal comes in low and that opens up a whole new negotiation process!
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
John Juarez
Fremont, CA
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Richard Weeks
Dallas, TX
-
Pete Xavier
Pacific Palisades, CA
5,772,593
Why ask? Celebrate!
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Fred Griffin Florida R...
Tallahassee, FL
-
Mary Yonkers
Erie, PA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Kasey & John Boles
Boise, ID
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
613,494
Industry standard in Florida:
The reason that it comes in at the purchase price is because the appraiser has a copy of the contract and wants to bring it in as close as possible, because...
- If it comes in too low, appraiser will get backlash calling him an idiot.
- If it comes in too high the lender (suspects dirty dealings) and will require a "review appraisal" and may even require a whole new appraisal.
Which is why even if the value is there, an appraiser does not value the property with a high appraisal...it will just be more red tape.
Eve
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Erik Lilyquist
Scottsdale, AZ
-
Pete Xavier
Pacific Palisades, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
2,348,576
I would be thankful you received value and not question why it was not higher
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Mary Yonkers
Erie, PA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Pete Xavier
Pacific Palisades, CA
2,401,675
It is the norm here in our area to come back at the purchase price but that being said there are a couple of appraisers here we can count on costing the seller $5,000. to $20,000 on a typical sale if we don't do their job for them by providing good comparable to them.
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Kasey & John Boles
Boise, ID
-
Pete Xavier
Pacific Palisades, CA
5,583,328
Richard Weeks gave you the answer you need....
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Mary Yonkers
Erie, PA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Kasey & John Boles
Boise, ID
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
716,452
I have seen appraisals over asking price, and under asking price and at asking price. It is what the appraiser determines the value to be as of that point in time.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
-
Lyn Sims
Schaumburg, IL
509,449
Appraisal is an opinion of value and can come at any price. It should not be a concern if it comes at contract price or above. It will be a concern when it's below the contract price because someone needs to make up for the difference.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
-
Lyn Sims
Schaumburg, IL
519,324
Appraisers see the contract and therefore have a target they need to hit. I've had them come in both high and low. High only makes a buyer feel good, but doesn't change anything regarding the loan. Low means renegotiation time with someone or everyone.
Since the change a few years ago, most appraisers are afraid to come in high, but I've still seen it a couple times.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Erik Lilyquist
Scottsdale, AZ
2,684,769
Most houses with available comps come in at contract price. See the answers from Pete Xavier and Mike & Eve Alexander for why.
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
759,785
Nothing succeeds like success. I'd save the energy to address the real problems that can arise!
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
-
Bob "RealMan" Timm
Minot, ND
1,231,853
Mr/Ms. Blue Profile, Be happy!
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
1,712,876
You must be brand new. Check with your broker, this is an easy one.
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Mary Yonkers
Erie, PA
-
Pete Xavier
Pacific Palisades, CA
564,494
Yes, sometimes appraisals come in above contract price...
As long as it comes in at contract price, all is well!
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Mary Yonkers
Erie, PA
-
Pete Xavier
Pacific Palisades, CA
5,115,152
There is no industry policy, but the purpose of an appraisal is to assure the lender that the contract price has value to protect the lender. And I've had plenty of appraisals come in above the contract price.
-
Debe Maxwell, CRS
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
54,940
Had one just last week that came in above contract price.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
-
Nina Hollander, Broker
Charlotte, NC
1,847,471
Yes they come in above the contract price but they don't have to. Appraiser just being lazy I bet. Have had a few over the last year that did. Buyer always thinks its great.
-
Debe Maxwell, CRS
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
2,785,156
Actually appraisers want to know if a property is under contract and for how much. I refused one time and the guy argued & begged. His appraisal came in contract price if memory serves
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
5,062,625
That's great news! Most if mine have come in at value but have had a handful below, and some that were above. As Richard Weeks says it's not an exact science.
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
-
Bob "RealMan" Timm
Minot, ND
4,583,484
So many factors to consider. Congrats...this looks like another transaction closer to a successful closing.
-
Debe Maxwell, CRS
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
1,506,613
I've had them come in over before. Most appraisers, in my experience, don't like to bring them in too much over contract or list.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
2,458,263
I've had some recently come in above contract price. There's no policy; if done correctly, appraisals should come in above, below and at contract price.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
86,514
I just had one come in $45,000 over contract price. It's like passing the state real estate exam--they don't tell you your score--just that you passed. If I come in at market so be it. If it's under I don't freak out. Adjust and move on.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
4,180,280
Many great responses.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
7,869,102
If the appraiser knows the contract price, that is a good market indicator.
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
1,325,114
It is not odd at all for an appraisal to come in at the contract amount. Lenders want to know that the value of their collateral is adequate to cover the loan amount. The lender usually commits to a certain loan amount as a per-centage of the total value of the property. Say…80%...with the buyer putting up a 20% down payment. The catch is that the loan will be 80% of the contract amount or the appraisal amount, not more. If the appraisal is more – yes, I have seen it happen – the loan will be 80% of the contract amount. Not 80% of the appraisal. The buyer will still need to put up 20% of the purchase price. If the appraisal is less than the contract amount, there can be a problem. Now the lender will not make a loan equal to 80% of the contract price.
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
921,504
Yes there is.
But I can not trust you are trained, experienced or informed sufficiently to use such information responsibly.
But that what comes with being Anonymous.
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Bob "RealMan" Timm
Minot, ND
-
Pete Xavier
Pacific Palisades, CA
4,800,132
I've seen some appraisals come in above contract price, but rarely at significantly over contract price.
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
3,416,038
It is very common. An appraisal is not always looking for the exact value in today's market, but if the home being bought is priced at market value. If below there is trouble. If too far above, the bank will want to know why under priced. Therefore most come in near or at sell price
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
4,319,773
Once in a while appraisals are lower than contract price. Afterall they have to run the business, too... lol!
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,554,227
Yes they come in above. Be Happy it's not low.
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
6,422,418
Who wants to stick their neck out further than they need to?
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
3,383,434
Isn't the very definition of market value what a buyer will pay and a seller will accept? That's the sales price. I wouldn't complain that an appraisal only came to sales price.
-
Debe Maxwell, CRS
Charlotte, NC
-
Chris Ann Cleland
Gainesville, VA
5,243,218
Yes, and do you have to ask such a question anonymously?
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
4,434,177
I have had appraisals come above contract price.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,242,104
Rarely the appraiser want the lenders to know you stole a home. Most will agree with your ractified purchase contract value.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
3,350,289
I do not find it odd that an appraisal is at contract price? It is pretty standard and to be celebrated. It beats coming in low.
I have seen appraisals come in higher than the contract price. Not many in numbers, but I have seen it.
-
Debe Maxwell, CRS
Charlotte, NC
3,986,308
5,878,935
They get a copy of the contract, and know the amount they are trying to get to. We don't see much over this either.
902,238
3,071,489
4,964,641
1,598,452
Lucky you! At least was not lower. :)
We had recently higher appraisal +13K.