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.
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.
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!
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!
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,
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.
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.