In my experience many sell at or below appraised value vs the small % that do sell for more. If you are the seller i would recommend the buyer get an appraisal done for many reasons OR being a seller its also good to get an appraisal and all your home inspections done so you dont have any surprises once you are under contract. Feel free to contact me if you have any other questions. Thanks Ryan 704/608.4767 C/T or Ryanharlan1@gmail.com
"Do single family homes sell for more than the appraised amount?" Some may but the vast majority sell for an amount below the appraised value. Since lenders will not entertain a loan on a property that appraises below the asking price, it would be fair to assume that those that sell above the appraised amount would be "cash" transactions.
There is a very sound reason why banks insist on a buyer's appraisal....they simply want to know if they are making a sound financial investment in a home that is worth the amount of the contract.
Why a cash buyer wouldn't assume the same posture is beyond me....but all buyers should conduct appraisals to protect themselves.
Hope this is helpful,
I've helped Sellers sell their homes for more than the appraised value when working for the Seller.
I have never helped a Buyer purchase a home where the appraised value was higher than what they paid.
Not all appraisals are equal, and not all appraisers will choose the same comparable properties to establish value.
Here is a good process to follow to establish a property value - especially if the property value is high or the valuation is unusual/complex. If you are the Seller, encourage the Buyer to get an appraisal. If you disagree with an appraised value, you can hire and pay another appraiser (I can recommend someone who will get it right) and try to settle it between you and the Buyer. If you and they cannot agree, you ask your appraisers to recommend a third appraiser who is mutually agreeable to them to review the two appraisals and come up with a final value. You and the Buyer split the fee from this third appraiser. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
We have in our contract that buyers can back out of the contract for any reason before the Due Diligence period is up. You should address a potential appraisal problem early and before DD is over. You have a lot of leverage with sellers if done by then. Call me and I can explain more.
If an FHA appraisal is performed on a property it is hard to overcome that set value they have attached to the property for 6-12 months after their appraisal.
If you want to call me and give me the specifics of your situation I can answer your question with a bit more clarity. I hope this helps.
Blessings upon you...