Home Buying in Bay Point>Question Details

Keith Danford, Home Buyer in Bay Point, CA

Our appraisal came back unexpected, should I try to get another appraisal?

Asked by Keith Danford, Bay Point, CA Thu Aug 6, 2009

We are already in escrow, we did an appraisal but the report came back the same as offer price. What's fishy about the appraisal is that it used only listing and sale record that are at our offered price range, and all of them are bigger in square feet. We and our agent know for a fact that there are many listing and sale that are in the 120k - 180k range in that area during the last 3 months, the appraiser just simply ignore all these.

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5
Keith,

That is normal.

When you as a buyer offer on a home, on the day you close that is the value of your home. That makes sense right. If the comparables are higher, the bank doesn't care, if its 15% higher buyers in FHA loans would start aksing for conventional loans, with the better rates and lower costs and imagine the anarchy and chaos that would cause, not to mention the sellers who would suddenly become uncooperative trying to break you out of contract in order to get that extra money. (Trust me on this one).

Appraisals work to protect the banks investment, they are mostly concerned for downside risk. Recent appraisal rule chages reflect this concern and offer agents, sellers and buyers a different range of challenges to get to close.

Relax and enjoy your new home!
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Fri Aug 7, 2009
Why would you get another appraisal. When you purchase a home you want the appraised value to be a close to the offer price as possible. If the home appraises a lot higher then the purchase, the bank may ask what is wrong with the condition of the property. The only time you want a higher appraised value is if you are refinancing, or selling the property. If there are higher comps then you already know you got a deal. Don't sweat the details. Your LTV is based off of the Purchase Price. The appraisal is for the lender, not you.
0 votes Thank Flag Link Thu Aug 6, 2009
Did you want the appraisal to come in higher? If you feel its not right, you should get a second opinion for sure. However, if it works for you and your lender, I wouldn't worry too much about it as long as you know what the real value is.
0 votes Thank Flag Link Thu Aug 6, 2009
No one can render an opinion unless all documents have been reviewed, compared and etc.

Speak direct with appraiser where they can explain value of home.

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0 votes Thank Flag Link Thu Aug 6, 2009
Keith,

If you and your agent have information that should have been included in the appraisal and you feel this appraisal is not an accurate reflection of the current value of the home our recommendation is to present this to the appraiser and request another report.

Taking the position of ignoring facts is not acceptable and needs to be pointed out for your benefit as well as others. At the very least, you should be entitled to an acceptable explanation.

Good luck
0 votes Thank Flag Link Thu Aug 6, 2009
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