CntryBoy777 - The Lazy A** Acres Adventures

[Latestarter]

Fact of the matter is, the property is worth the exact amount the buyer is offering and the seller accepted. Not a penny more... or less. The appraisal is a best guess estimate by a "trained, professional, evaluator of real property" for the sole benefit of the LENDER, and is being paid for by the BUYER, for said lender to entice the loan of funds to purchase. Were no lender involved, an appraisal would be worthless and of no need. The buyer thinks it's worth what he offered (or why would he have offered to buy at that price?) and if the seller accepts the offer, has therefore agreed to that value.

The appraiser simply finds similar properties, as close as possible, that have sold as recently as possible, to act as "comparables" so the lender (who has no interest in buying the property) can feel safe that should the buyer remorse and go into default, (whereby the lender ends up HAVING to "buy" the property) they have a reasonable chance to know that they'll at least get their money back and not take too big a loss.

I could go much further in depth, but will not Suffice it to say, I hope that all goes well for you Fred, and if the appraisal does come in a little low, you can always offer to pay the difference and get the loan at appraised value. Instant equity if you can do it.

 

[greybeard]

The buyer thinks it's worth what he offered

True in all things. As I said earlier, the seller is apt to make a bundle of $$ off the sale anyway, or he wouldn't accept the offer. Not unusual nowadays for sellers to double their $$ on real estate sales, especially if they picked it up cheap, put some $$ into and then flipped it.
The market is pretty strong nationwide right now.

 

[Bruce]

Maybe. Been so many decades since I had to have anything appraised for lending purposes I just wouldn't be able to say. I was thinking maybe the lender would give the prospective buyer a better deal on the loan terms if the property appraised higher than the purchase price....wishful thinking?

I think so. Far as I know the terms of the loan are already agreed before the appraiser does the work. As LS said, to make the lender happy that they aren't financing something that isn't worth what the loan is for.

 

[CntryBoy777]

If we would've been in a better financial position and had more options, then I would've felt we would be in a better bargaining position and could have dickered with the offer more and had a better deal worked out. However, I didn't want a decent place to pass us by.....once we get passed all of this and we are holding keys in hand, I will be a bit more specific about some of the details. I will say now tho, that the proposed note will sure put a crimp in our style, but we will make it work and be thrilled to death to truly be on our own once again.....

 

[B&B Happy goats]

Its friday...hope you got good news today

 

[CntryBoy777]

Received word late this afternoon that the underwriters have Approved our loan!!...........there are a few minor issues to clear up, but they will be easily handled and we can move forward....we want to Thank all of ya that supported us thru this whole mess and standing with/behind/beside us with such kind words and prayers.....we wish we could each of ya individually, but in this cyber age this will have to do....

 

[Hens and Roos]

 

[Rammy]

Received word late this afternoon that the underwriters have Approved our loan!!...........there are a few minor issues to clear up, but they will be easily handled and we can move forward....we want to Thank all of ya that supported us thru this whole mess and standing with/behind/beside us with such kind words and prayers.....we wish we could each of ya individually, but in this cyber age this will have to do....

 

[B&B Happy goats]

Received word late this afternoon that the underwriters have Approved our loan!!...........there are a few minor issues to clear up, but they will be easily handled and we can move forward....we want to Thank all of ya that supported us thru this whole mess and standing with/behind/beside us with such kind words and prayers.....we wish we could each of ya individually, but in this cyber age this will have to do....

 

[frustratedearthmother]

That is wonderful news - congrats!