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Are house value appraisals low?

I'm buying a Fixer-upper at $220,000 and it was just appraised at $223,000.  MANY repairs are needed; the sellers aren't even aware of the extent of the repairs and their cost, but want to sell the house As-Is.  My seller's agent said these appraisals are often lower than the actual value of the house.  True?  Any tips for negotiations or bailing out?

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March 13 2010 - Wilmington
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No the agent is fibbing and just wants to sell the house..
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March 13 2010
Appraisers are cautious, as they should be. If he had a copy of the contract, that may have influenced some. However, as a buyer, you want it to be the fariest appraisal possible. You didn't get an after rehab appraisal. You paid for the appraisal, so call and talk to the appraiser. I'm sure he will be happy to explain.

You can still ask for repairs or money toward repairs even if the sellers say it is as-is. The worst thing they can say is no.
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March 13 2010
This sounds like an example of the appraiser knowing the price on the contract.  Although arguing the ethics of it can be semantics, I dont feel it serves the best interest of the parties involved.
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March 13 2010
Was the appraisal done "as is" or "subject to" the repairs?  Most appraisers will reduce the homes value for a poor condition.
You can still request assistance for any repairs listed by the appraiser and they list a cost to cure.
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April 06 2010
Was the appraisal done "as is" or "subject to"?  The appraiser may have built in the value after the repairs are completed.

Most appraisers will list repairs and the estimated cost that you can try and get the sellers to offset.
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April 06 2010
YES PROBABLY APPRAISER HAD A COPY OF PURCHASE AGREEMENT. CHECK THE COUNTY TAX RECORDS AND COMPARE THE NEIGHBORHOOD HOMES. IT WILL GIVE YOU AN IDEA OF COMPARATIVE VALUES OF HOMES. COUNTY MKT VALUES ARE UNBIASED VALUES AND ARE TO COMPARE THE HOMES A NEIGHBORHOOD. 
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April 06 2010
No. I don't think its is true that appraisals are normally lower.  Check around on recent sales and conditions of those homes.
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April 06 2010
read the appraisal.  the appraiser will have listed his comps.  look at the adjustments are they aggresive or conservative?  you cannot pidgeon hole all appraisers, as "always low" or "always high".  the proof of whether or not the appraiser is low or high is in the document.

i will take an appraiser's value of a property 9 out of 10 times over that of an Agent.
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April 06 2010
 
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