Which is better for a buyer....a high appraisal or a low appraisal?
Reason i am asking is that i just got my appraisal report back and it came in higher than the contract price. Contract price $250....Appraisal $275.
I was hoping for a low appraisal amt so i can go back to sellers and negotiate a lower price. Was i wrong for hoping the appraisal to come in lower?
So which is better, high or low appraisal?
Low appraisal can be good for the reason you mentioned although that comes with risk. If the seller won't reduce the price, you may lose your financing. Banks wont lend you more money than the house is worth.
A high appraisal is nice because it is instant equity. Your net worth just went up and you didn't have to put any work into the property.
I benefited from a low appraisal once but I almost lost the deal before everything worked itself out.
@Charmaine M. - Is this a property that you are personally buying?
I'd say high is better. We recently had a low appraisal and had to switch lenders, the seller wouldn't budge on the price (it was less than they paid 10 years ago) and we didn't want to fork over more for the down payment since we wanted the cash for the next deals.
Yeah that is a good way to look at it....more equity.
I think i am both happy and disappointed on the report.
Justin yes it.
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