Is it worth paying 2.5% more than the appraised value?

Asked by Firsttime, Los Angeles, CA Mon Feb 6, 2012

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9
SLDIRECTREO, , Los Angeles County, CA
Wed Feb 29, 2012
Do not pay anything unless you know for sure. If you want to see a shotty example of what paying more can get you, just drive toward Oxnard via PCH past Santa Monica Pier. As a buyer, you can always walk away. As a Broker that I had to pay my dues to get my license, I like to see my client as future homeowner; not another statistic in Los Angeles Foreclosure Listing.
0 votes
Michael Cheng, Agent, San Jose, CA
Wed Feb 22, 2012
An appraisal is really just a shot in the dark from a professional appraiser/guesser. There are some basic elements of comparison to the historical sales figures of neighboring homes, but it can't take into account of the shifts in demand over the 2-3 months from the most recent sales. A difference of 2.5% is well within the margin of error. Ultimately, the price you pay is based on your own assessment. The appraisal just limits what you can borrow if you're financing the purchase.
Web Reference:  http://www.archershomes.com
0 votes
Dorene Slavi…, Agent, Torrance, CA
Wed Feb 22, 2012
Dear First time,
It really depends upon the property in question, so it's not possible to answer this question accurately without additional information.
If the home is in a great neighborhood with stable property values the 2.5% might just reflect this current market situation we are in...if not...not. You need a really good Agent to work with to assit you with statistics that will answer this important question!
0 votes
Bill Eckler, Agent, Venice, FL
Tue Feb 7, 2012
Firsttime,

As a cash buyer, the choice is yours..... but not recommended......

As a buyer financing your purchase, your lender will likely not allow a transaction in which the property does not appraise for the purchase amount.

Hope this helps,

Bill
0 votes
Mimi Davies, Agent, Santa Monica, CA
Tue Feb 7, 2012
Hi Firsttime,

Since you made an offer on the property then we can safely assume that you loved it. As long as there are no upsetting surprises during the inspections and such, a small difference between the appraisal and the price shouldn't affect your perception of the home. You probably envisioned yourself living there; and if this feeling is still there then go for it and have a great life!

Good luck,
Mimi
0 votes
Carrie Rolli…, Agent, Los Angeles, CA
Mon Feb 6, 2012
If you have a huge attachment to the home, fits your criteria, yes. It can be a point of negotiation at this time as well, consult with your agent...value of a property is literal appraised value and perception of value from the buyers' view.
Best of luck,
Carrie Rollings
0 votes
Douglas Perez, Agent, Los Angeles, CA
Mon Feb 6, 2012
Nowadays, in most areas , it's Buyer's market. This means a buyer can take advantage in negotiating for a lower price or at least appraised value, terms, and conditions. Even though, you have fallen in love with this property, I would advise you to negotiate with Seller to lower price.

Have a blessed deal!

Doug Perez
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Mon Feb 6, 2012
Appraisals are a statistical opinion of one person about the value of a property... the real value is what a willing, ready and able buyer is willing to pay for it. If you like the house and you have the money then the house is worth what you want to pay for it.
;

In other words... yes

Ron Escobar, MBA
Broker
Ron@select-realestate.com
Web Reference:  http://shortsalecentral.org
0 votes
Shelly Long, Agent, Sacramento, CA
Mon Feb 6, 2012
Hello~

Not in my professional or personal opinion. However, the caveat being that it depends on what you're trying to accomplish by doing so. Can you please elaborate?

Thank You~
Shelly Long
916-806-HOME (4663)
Web Reference:  http://shellylongteam.com
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