Is it normal the appraisal of a house is $10k lower than the purchase price in Morrisville, NC? Do you have any suggestions regarding the difference?

Asked by xiam, Cary, NC Thu Apr 11, 2013

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5
Joe Matthews,…, Agent, Cary, NC
Thu Aug 15, 2013
It is not abnormal to see appraised values below purchase prices. We used to see a lot of those in recent years but is getting less and less lately. Lack of good comparables, unfamiliarity with the area, conservatism, recent 'bad sales' in the neighborhood etc. could be the reasons. The obvious choices for the buyer are: negotiate for the appraised value, come to a compromise on the agreed price or pay up the difference in cash at closing (if you really love the house). Sellers can always dispute the appraised value, get another appraisal done.
1 vote
Jackie Hall…, Home Owner, Boulder, CO
Sat Jul 6, 2013
Appraisals in this area really depend on the appraiser. We had one who just went with tax assessment and *contract/listing* price and *1* comp. As a result we got a really low ball assessment and had to report back to his company because he *said* these things at the site view. It was enough to qual our loan as we both came into the transaction without agents and compromised on price a little because of it. It was a good 10k, really more like 15k, below market. The appraiser didn't account for the addition since the last sale or that we had the 2nd largest lot in the whole development--by almost an eighth of an acre!
0 votes
Gail Norris…, , Raleigh, NC
Fri Jun 7, 2013
The lender will always use the lower of the appraised value or the sale price in order to protect its interest.
0 votes
Curly Sue, , Texas
Wed Apr 24, 2013
I suggest you offer the Seller appraisal value or walk away from the deal.
0 votes
Pay appraise fee and trust on the figures on the report. They never appraise a property with possible future developments etc...which should definitely increase the value of the property. To get to know the actual figures such as recent sale, area of the home, etc can be found in government website. Appraisal report is only good for the loan process. Rather a home inspection report would be more important!
Flag Sat Jun 8, 2013
Gail Ferri P…, Agent, Cary, NC
Wed Apr 24, 2013
If the house is listed with the correct sales price, then the appraisal should come in at the sales price or above. However, sometimes you can run into an appraiser that is not local to the area. That can happen with a lender who is not local to the area either. If an appraiser has worked this area a long enough time, then he should be familiar with the neighborhoods, and there shouldn't be a problem. You never really want an appraisal to come in lower than the sales price, because it makes it difficult to get a loan.
0 votes
Thank you for your answer.
Flag Wed Apr 24, 2013
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