Home Buying in Ridgewood>Question Details

Lr New Owner, Home Buyer in Midland Park, NJ

What if your home appraisal is only $500 over the sale price? Is that good, bad or normal?

Asked by Lr New Owner, Midland Park, NJ Fri Apr 13, 2012

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Your appraisal is as good as the last three sales in the neigbourhood. Focus on the quality of the location,infrastructures,school district,crime statistics,that is where the real value is!
0 votes Thank Flag Link Fri Apr 20, 2012
That's great! I've had a few homes come in under the appraised value and it wreaks havoc on the sale.

Congratulations! Good luck with your move!
0 votes Thank Flag Link Mon Apr 16, 2012
This is great because buyers love to see the home they are buying appraise for more than they're offering. Appraisals are coming in close to asking these days as realtors are really getting it right pricing these homes correctly and getting offers that are not too far from the asking price.

Ana Moniz, ABR
Keller Williams Village Square Realty
Ridgewood, NJ 07450
(201) 247-6341 - Cell
0 votes Thank Flag Link Sun Apr 15, 2012
Its normal and fine..you just want the house to appraise AT LEAST at the purchase price, not below so you are in fine shape....
0 votes Thank Flag Link Sat Apr 14, 2012
Very normal, breathe a sigh of relief and know the deal can move forward!!! In these days of tough appraisals, they are rarely over contract price by more than a couple of thousand dollars. In one of my deals which was negotiated at a significantly lower level than the sellers originally wanted, the appraisal came in $4000 less and they are having to reduce the closing price of the house to match it.

Good luck in your move!
0 votes Thank Flag Link Fri Apr 13, 2012
Sounds like you got some good advice already on this one. It is normal. Too high and the bank asks why you are getting it at so such a low price. Too low and then they will not give you the loan. Your appraisal was just right!

James Lockard
Realtor Associate
RE/MAX Properties
Office: 201-825-6600
0 votes Thank Flag Link Fri Apr 13, 2012
Hi Lr,
To me this sounds like your purchase price was fair and at market value. Good for you.
Enjoy your new home and may you have many happy memories in it.
Chris Gubb
0 votes Thank Flag Link Fri Apr 13, 2012
Normal, as we've been seeing appraisals coming in right at the sales price.
0 votes Thank Flag Link Fri Apr 13, 2012
That is a small difference in the housing market and this happens a lot in the market place today, you would have a problem if it appraised for a lot less.
Web Reference: http://www.vipretorsnj.com
0 votes Thank Flag Link Fri Apr 13, 2012
It means that you bought the property cheaper than the market, and yes, Michael is correct, appraisers are conservative on the values. So, your $500 is more like $2,000 to $5,000 in reality.

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Fri Apr 13, 2012
That's normal. Most appraisers just cover themselves by showing an appraisal value equal to the sales price, even if the true value is higher.
0 votes Thank Flag Link Fri Apr 13, 2012
Hi Lr New Owner,

That's good. You always want your appraisal to come in where it needs to - so you can get your loan without having to re-negotiate with the seller (if it comes in too low).

Shanna Rogers
SR Realty
0 votes Thank Flag Link Fri Apr 13, 2012
No reason to fret. It seems that many appraisals are coming in very close to the negotated price. Your bank is happy. So they can now move forward with your loan.
0 votes Thank Flag Link Fri Apr 13, 2012
Appraisals can vary based on who appraised the home and what information they were able to get access to. Some appraisers will just drive by the home and use information from comparable sales to determine your home's appraised value. Others might go a step beyond by going inside the home and seeing if there are new improvements or things that would depreciate the home value. Then, they use this information to make adjustments to their appraisal. Also, some appraisers will discuss the home and other comparable homes with real estate professionals to get a more accurate picture of the home's value. My point is, no two appraisals are alike. As long as your home appraises for the sale price, then you avoid situations where the seller may need to drop their sale price to match the appraisal or the buyer may need to pay extra money in their down payment to make up for the difference between the appraised value and the sale price. If you are at all concerned about the appraised value, you should speak with your agent.
0 votes Thank Flag Link Fri Apr 13, 2012
It's not a bad thing. Most appraisals today, are coming in for exactly what the contracted price is.
0 votes Thank Flag Link Fri Apr 13, 2012
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