I thought I would expand on Shaneâ€™s answer. The reason this does not work is that every area has a price ceiling. Meaning that no matter how big a house is, people will only be willing to pay so much to live in that area.
For example: If a 1000 sq ft home sells for $300 per sq ft, or $300,000. This does not mean that a 3,000 sq ft home will sell for $900,000. What you find is that larger homes will almost always sell for less per square foot than a smaller home all other things being equal.
Hopefully this clarifies your questions.
When you received your appraisal report (you can get a copy from your lender) you will see a floor plan with measurements. Did you find an error? Also in the report on the sales grid - did the appraiser make adjustments to the comparable properties for difference in square footage? Depending on the market reaction to square footage - I typically will only make an adjustment if there is a difference over 100 square footage
(smaller homes get adjusted for any difference)
If this were a home I appraised and you had an issue - I would want to know if I was wrong. and yes I would do something about it. I would measure your home again -- County records do make errors. If my research shows the county records shows one thing and I measured something different I ALWAYS make a comment in the report.("county records show subject has ***** square footage - my measurements show **** square footage. Home owner reports an added on bedroom of *** square feet - done on *** date . Permit number ***- all work was done in similar finish and quality as home)
If the subject measures larger -- guess what -- was there an add-on? was it done with permits? I call the planning department and pull all permits on the subject. This takes more time but in the long run -- that's my job-- I want to make sure I do a complete job - measure correctly-- and address any issues.
hope this helps
I have found that a lot of the homes built in the 70's and 80's have errors in the County Records:
I don't know if this is because of the systems they had in place, (not computers) or due to the humans doing the work.
When we write a LISTINg and submit it for MLS, we research the # of Bedrooms, House SQFT and LOT size among other things. We can enter things that are different than the Records and put down things like BUYER VERIFY, or PER SELLER.
Things like this, are not going to keep a house from selling.
The appraiser has the final say. Even if you think he is wrong! Very rarely does an appraiser change his opinion, even when challenged, and it is very hard to go above them. The only way to get around a bad appraisal is to change lenders and start the process over and hope for a different outcome. But your purchaser would have to be agreeable to that, as it would cost them more money.
Depending on what the value came in at compared to what your sales price was or what you were hoping for, usually negotiating with the buyer is the best place to start.