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Profile picture for blairpt123
I recently put in a bid on a townhome in central new jersey for 360k. My loan was approved with wells fargo and we recieved our appraisal was last week. I recieved my appraisal and it was only for 362k. Should this concern me since the price im paying is only 2k under the value. Is the price and value close because wells fargo and I only required 360k for the loan? Does this mean my purchase isn't a good deal? I'm really upset by this information.
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March 30 - US
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Profile picture for Roger Wilco
You and the seller agreed on the open market to settle at that price and have established the value. The appraiser simply found that other recent sales had been for slightly higher amounts and gave you a value 2,000 more based on that data. Why be upset over this news? I'd be upset if I paid $360,000 and the house appraised for less.
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March 31
Profile picture for Mark75NYC
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Some towns/counties are seeing appraisals falling in value because of the oversupply of houses on the market.  What town and county is this in?  
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March 31
Profile picture for DebtFreeDave
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I don't think you are going to find too many appraisers that are going to stick their neck out to far in this market.  I don't think I would worry about it.
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March 30
Profile picture for 203K Specialist
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How much more would you have had to pay for it 3 years ago?  You are getting a great deal.
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March 30
Profile picture for Martin Wareing
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blair,

Nobody is getting a good deal. these days.  They, the buyers, are actually the highest offers paid for the property. I do not see any new pilots for "FLIP THIS HOUSE"... I did however see a new pilot starring those same people from last year's show on the sequel pilots:

FLIP THIS BURGER
REPO THIS HOUSE
MIAMI LEGAL  ( a spinoff from BOSTON LEGAL about Foreclosure Attorneys in South Beach)

If you are buying the home for a home... you are fine.  If you are buying the home to make money......   good luck... we have not even finished laying people off.  Do not buy looking for a V bottom in the market or you may be kissing your "V" bottom good-bye.  Keep rockin'.
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March 30
Profile picture for blairpt123
I guess what your saying makes sense. I was just hoping it was higher and that I was getting a better deal.
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March 30
Profile picture for 203K Specialist
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Blair,

You are buying the proprty for what it is worth in the current market, what more do you want...You want to buy it for less than it's worth?  

Why would the seller sell the property for less than it's worth?

Nathan,

Look up FannieMae form 1004MC 
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March 30
Profile picture for blairpt123
What I'm saying is that in a time where people are getting great deals on homes, I'm upset that my appraisal was only a few grand over my buying price. That's my issue.
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March 30
Profile picture for natewolf
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The appraisal boards work differently in each state. In North Carolina, while an appraisal lists "active" and "pending" sales for informational purposes, they are not used to establish the actual value-- i.e. as comparables.
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March 30
Profile picture for Courtesy Mortgage
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Is Edit ever going to work?   "small discount to appraised value instead of a large one" 

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March 30
Profile picture for Courtesy Mortgage
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Since January 2009

Funny but EVERY appraisal I look at includes Pending and Active comparables into the report.  I wonder why that is Nathan?

Blair - you are upset that you are buy only at a small discount to appraised value instead of a small one?  This makes no sense at all.

The PUREST form of valuation on a property is what a willing buyer and willing seller agree to.  You agreed to 360,000, probably felt OK with that at the time, and now that the appraiser told you it is worth MORE than you agreed to, you are upset? 
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March 30
Profile picture for CA UMB
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Blair,

Your bid was probably well thought out by you. That was what you were willing to pay. Your appraisal was probably a "safe Appraisal" because all you needed your appraisal to come in at was $360k. .... I don't understand why you would be upset. You got it for what you wanted and you were probably willing to pay even more. .... Good luck, Rudi
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March 30
Profile picture for natewolf
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A property should appraise for the value of the loan. Expecting some huge disparity in the appriasal and the purchase price is an unrealistic expectation. It may definitely be a matter of it being a Wells Fargo ordered appraisal. Their appraisers tend to be quite conservative.


A market analysis by a Realtor may be a better indication of the value of the property based on homes for sale in your area. Appraisers only use "SOLD" properties for valuation.
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March 30
Profile picture for 203K Specialist
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If the home you are buying was worth substantially more than you are paying for it...why would the sellers sell it to you at that lower price?
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March 30
 

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