Zillow Advice: Pricing - are homes sold for the amount of an appraisal, or more, of less? http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ Zillow Advice | Zillow Real Estate Vince that first paragraph ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ Vince that first paragraph logic makes no sense in some cases, such as a flip. &nbsp;A month earlier the house sold for X amount, now it's worth Y amount. &nbsp;The most recent comp of it being itself is 200k less? Thu, 26 Sep 2013 23:58:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-09-26T23:58:00Z Since the definition of market ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ Since the definition of market value is what a buyer and seller are willing to pay for a property, the appraised value is typically the selling price, simply because its the best 'comp' - at least in most cases. <br/><br/>Keep in mind a property is worth&nbsp;a value within a RANGE... but to make it simple, we pick a number within that range based on a number of factors, typically we give most weight to one comp or the next, and state that number as the appraised value. <br/><br/>In the case of a PURCHASE - as compared to a re-fi - the best 'comp' is the Subject, hence we appraise it at the purchase price. <br/><br/>But not always... but that's another thread.........<br/> Thu, 26 Sep 2013 05:09:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-09-26T05:09:00Z In almost every case I have ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ In almost every case I have seen they come in at the exact amount of the home sale. &nbsp;It's frustrating when you tell your clients, "Hey, you got a great deal" but the appraiser is protecting themselves is my assumption.<br/><br/>I actually had a buyer buy one of my investors properties. &nbsp;It was a great deal, one of the questions the appraiser had for me was "why is this house selling so much cheaper than the others in the area that are comparable?" I explained to her that it was a flip, they wanted a quick turn around as they bought it very cheap too. &nbsp;Lets say the house sold for $700,000... &nbsp;guess what the appraiser came back as an appraised value??? &nbsp;Hint is starts with a 7 and has 5 zero's after.... Thu, 26 Sep 2013 05:00:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-09-26T05:00:00Z If the sales price is reasonable ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ If the sales price is reasonable and can be supported with recently sold and pending sales then is should appraised at or near the sales price. Typically a dwelling will appraise higher than the purchase price when the listing agent&nbsp;is a dual agent and&nbsp;double ends a short sale transaction or pushes through the offer from a friend instead properly marketing the dwelling and accepting the highest offer. Appraisals appear to come in lower in transactions with government loans like FHA or VA because the buyers are first time buyers and have little or no skin in the game because they are puting little or nothing down. Thu, 26 Sep 2013 04:16:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-09-26T04:16:00Z THE ANSWER IS YES to all ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ THE ANSWER IS YES to all three!<br/><br/>First of all, "what is the point of an appraisal?" is the place to start.&nbsp; Appraisals are almost always conducted by a lending institution to assure the institution that the property is worth loaning on.&nbsp; So the purpose is to satisfy the bank.<br/><br/>Inadvertently, if the bank won't be happy to make the loan, it's good for you to know that because it may indicate that the bank's appraiser thinks the contracted purchase price is too high.<br/><br/>Regardless of the outcome (=, above, or below purchase price), the property is still purchasable, hence my initial response of YES to all three.&nbsp; If the appraisal comes in = or above the contracted purchase price, then the bank is happy to make the loan.&nbsp; If the appraisal comes in $3k low (for example), then you would have the option to pay $3k out of pocket in cash at settlement to cover the discrepancy.<br/><br/>If the Appraisal comes in low, it is likely that you have an appraisal contingency in the contract, allowing you to renegotiate with seller or back out of the deal at no further cost to you (and recoop your Earnest Money Deposit).<br/><br/>Best,<br/>Max Thu, 26 Sep 2013 03:38:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-09-26T03:38:00Z Homes here in California ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ Homes here in California are selling for more than appraised value. I have seen homes listed by HUD (with their posted appraisals) sell for more. Because the buyers are using cash to cover the difference in the appraisal and the loan. Or they ask the banks for new appraisal, because the market is moving to fast.&nbsp; Wed, 26 Jun 2013 08:08:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-06-26T08:08:00Z As a home owner, you have ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ As a home owner, you have the right to ask any price you choose for your property. Generally a price is established by running CMA's (competitive market analysis) to determine what similar homes in your area sold for. The appraisal is what determines how much the bank will lend for the purchase of the home. Should you sell for more than the appraisal (which is not advised) a buyer would have to pay the difference. Selling for less than appraisal offers the buyer a deal, but really doesn't benefit you in any way.&nbsp; Wed, 26 Jun 2013 01:43:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-06-26T01:43:00Z Homes rarely sell above appraised ... http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ Homes rarely sell above appraised value as offers above appraised value create difficulty with mortgage loans funding.<br/><br/>I hope you realize that an assessed value is not an appraised value, and that Realtor CMA's are not appraised values either.<br/> Wed, 26 Jun 2013 01:15:00 GMT http://www.zillow.com/advice-thread/are-homes-sold-for-the-amount-of-an-appraisal-or-more-of-less/499010/ 2013-06-26T01:15:00Z