Appraisal Came In At Contract Price

**Wimbley** · 01-23-2010, 11:07 PM

I was surprised to find out that when the appraisal was performed the appraiser was aware of the dollar amount of our contract. Appraisal subsequently came it at the same price as the contract we put in on the house.

Doesn't this seem not right?

Our Realtor said we could not pay too much for the house as we'd be protected by the Appraisal Contigency in the contract. I was hoping the appraisal would come in less, so we'd get a better price on the house.

Why not let the appraiser furnish his/her own estimate and not be guided by the lender and the price of the contract. Thoughts?

**Greg** · 01-24-2010, 06:14 AM

If the house was not worth the price the appraisal would have come in lower.

The appraiser needs to see the contract to find out if you were getting money back from the seller or if there were any other concessions being made which would affect the value of your contract.

**Wimbley** · 01-24-2010, 08:45 PM

I had thought it was a totally independent assessment of the house's worth. It seems more of a measure of making sure the lender does not lend too much on a property thats worth less.

Greg, thanks for the response.

**PreviewOrangeCounty** · 01-24-2010, 09:55 PM

The appraisal is meant to be an assessment but all apraisers look at the purchase price and of course take that into consideration

**Greg** · 01-25-2010, 05:25 AM

Originally Posted by Wimbley

It seems more of a measure of making sure the lender does not lend too much on a property thats worth less.

You hit on it exactly. The appraisal is for the bank even though you pay for it.

**BoiseRealEstateSoup** · 01-26-2010, 08:08 AM

Originally Posted by Wimbley

I had thought it was a totally independent assessment of the house's worth. It seems more of a measure of making sure the lender does not lend too much on a property thats worth less.

Greg, thanks for the response.

That's exactly what its for!

I've had them come in low, and I've had them come in high. The bank is just verifying that the value that is on the contract is legit.

**TexasLeaseHouses** · 01-31-2010, 01:44 AM

Appraisers have been 99% right on the mark with their valuations. I've rarely had an issue with their appraisal's accuracy, even if I wasn't happy with the end numbers.

If you really believe it was an inaccurate appraisal, you can speak to the mortgage company. However, they usually take in the past 6 months of home sales in the area as comps.