Home arrow Mortgage Forums arrow Property Appraisal arrow

Home purchase of $82,500 vs Appraised value of $82,500

Author Message
Mexstang

Guest







Post Posted: Sat Apr 30, 2011 12:27 pm    Post subject: Home purchase of $82,500 vs Appraised value of $82,500
Like 0
Dislike 0

Hi,
I am buying a home for $82,500. The Loan is for $78,000. It was just appraised at $82,500 using the Sales Comparison Approach. Using the Cost it would be $97,800. Do I have anything to worry about or is my loan pretty much approved?

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile apexoffice
apexoffice
Moderator



Joined: 09 Jul 2008

Posts: 193
Location: Atlanta, GA
56.04 Dollars($)
Post Posted: Sat Apr 30, 2011 5:00 pm    Post subject:
Like 0
Dislike 0

I can't speak for your loan approval, but what you are describing is pretty typical. The cost approach will typically be the highest approach to value because noone will pay open market price higher than the cost to rebuild. In this recessed market you will see a significant difference in cost versus market sales, which is why construction has nearly halted.

As long as the final opinion of value is equal to or greater than the sales price, you should be in business. Good luck with your new house!

_________________
Benjamin Smith
Atlanta Area Appraiser
Icon Mini Profile raymond
raymond
Community Expert
Community Expert

best lender badge

Joined: 03 Jul 2009

Posts: 1189
Location: Irvine, California
27.86 Dollars($)
Post Posted: Sat Jul 30, 2011 8:05 am    Post subject:
Like 0
Dislike 0

>>Do I have anything to worry about

No.

_________________
Raymond Denton
www.RaymondDenton.com
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights

Bookmark this page

Helpful References

Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators

     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools

Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community

MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards

Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (252)











We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 0.063 seconds.