Are comps the true predictor of an appraisal outcome?
Here’s my situation. I placed an offer of 500K on a 2388 ft house and had my offer accepted on Feb 9th. After acceptance of the offer I noticed that the exact same floor plan that I am buying, closed for 485K. The house for 485K had an amazing view, and was on the end of a cul-de-sac. The house I’m in escrow on has only a peek-a-boo view, and is located on a through street. The lot of the house I’m in escrow on is larger than the one that closed for 485K.
My concern is the appraiser will see the house that sold for 485K, and now will not value my home more than that. The two homes have comparable upgrades (ie granite, stainless, tile floors). I’m worried that if the appraisal comes in at 485K or lower, the seller will no longer want to sell at that low price.
Does anyone have any insight for me?
Tough situation. Value is established by mutual agreement between buyers and sellers. It is Market Conditions that set the tone for establishing that value. If the appraiser takes this into consideration (which they should) then you shouldn’t have a problem. For instance if the 485K property was a short sale, then that would explain the lower sales price.
My advise is to focus on the appraiser coming in at your sales price so you can move toward closing your escrow. I’m sure the value is there and in today’s complicated environment you should feel fortunate to have secured the home of your choice. Good Luck.
