Home Buying in Shrewsbury>Question Details

V, Other/Just Looking in Shrewsbury, MA

Question about a home appraisal.

Asked by V, Shrewsbury, MA Fri Aug 26, 2011

I had a home appraisal relatively recently and the value the appraisor came up with was exactly the agreed upon sale price. How could this be? I though the appraisor was a 3rd party who was not privy to the price the seller and buyer had agreed to. Seems unlikely to be a coincidence.

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10
"If you think you are paying too much don't buy it"

Pure Brilliance !!
1 vote Thank Flag Link Mon Aug 29, 2011
In addition to your inspector, your lawyer is another person actually working for you. They risk malpractice for errors of ignorance or errors of malice.

I second the recommendation to 'not buy if you think you are paying too much' LOL
1 vote Thank Flag Link Mon Aug 29, 2011
Great..so I basically paid someone 275 bucks to take a look at my signed contract and say that they agree with the price. What a rip-off.

@ Christine - Thanks for your insightful comment. Extremely helpful criteria.
0 votes Thank Flag Link Mon Aug 29, 2011
It happens all of the time. If you think you are paying too much don't buy it.
0 votes Thank Flag Link Sat Aug 27, 2011
Really. !!?
this is complete crap. So basically the only person that a buyer hires who actually has their interest in mind is the home inspector.
0 votes Thank Flag Link Fri Aug 26, 2011
Hi V,

The appraiser receives a copy of the executed purchase contract prior to doing the appraisal - therefore, they are aware of the agreed upon price.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Fri Aug 26, 2011
It's not a coincidence. The appraiser is given a copy of your contract by your lender before they go and do thier work. I've never approved of this and like you believe it would be more appropriate for the appraiser to do his work without knowing your contract price. This doens't mean that your appraisal isn't valid, but perhaps not quite as valid as if it had been done without their knowing what your contract price was.
0 votes Thank Flag Link Fri Aug 26, 2011
Not completely true, they indeed have a copy of the purchase agreement and are hired by the bank although the buyer pays for it. Most appraisals come in exactly what the purchase price is. Some appraisals are not to find out what teh exact value is but if there is enough value in the price the buyer is paying. The main reason teh value comes out almost exact is the listing agent if tehy are good, already assessed teh value and priced it at or near market value, if they did their job correctly, the value is near the same.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Aug 26, 2011
I understaood the same thing, years ago.
Today, things are different;
The Banks are just looking to cover their loans.
The way it works for Appraisals, that's really all that matters for the moment
and there is certainly no reason to get excited about it;
They did say YES!
0 votes Thank Flag Link Fri Aug 26, 2011
In Brevard County Fl the appraiser will contact either the listing or the selling agent for a copy of the executed contract.
You could ask your agent; but it smells like the same thing.....
Web Reference: http://www.321property.com
0 votes Thank Flag Link Fri Aug 26, 2011
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