Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Appraisal
We are on track for our April 9th close date. We just found out what the appraisal came back at and it is $2,500 over our purchase price. Our loan officer said it was acceptable based on the comparables. I was hoping for more. Would you be worried at all that you maybe paid to much? It is a Short Sale I don't know if that matters. I guess I'm just worried we could lose money if we go to sell it later on. This is our first home so I know my worries may seem silly.
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Re: Appraisal
Some times with short sales they are sold at a price far lower than market value, other times not.
When a property is purchased as a short sale there are typically at least 2-3 appraisals, one or two of them you probably knew nothing about.
If the sellers got approval for the short sale prior to listing the home, the bank who has the mortgage had an appraisal and probably a couple of BPOs done to determine what they felt was an acceptable list price.
The bank who has the mortgage on the home most likely also had their own appraisal done when you made your offer to determine if they would accept it or not. If their appraisal had come in significantly higher than your offer then they wouldn't have accepted your offer.
So, there's a good chance that your offer is about where the market value of the property is. As long as you have a relatively low fixed interest rate, and you put some money down on the property then you're doing fine. With any investment there's always some risk invovled though, so you never know.
I know being a first time home buy is scary, but just take a deep breath and try to enjoy your new home!
You'd be paying too much if the appraisal was significantly lower than your contract price and you bought it for that price anyway.
Not all houses have "instant equity" in them. I think you can be confident that your appraisal is confirmation you're paying a fair price for your home.
Has your REA gone over the comps with you? Do you understand them? Do you understand why your appraisal came in at the price it did? Not all foreclosures or short sales sell for steep discounts from the market value.
Any home purchased, especially right now, has the potential to lose value. It's a risk you take especially when buying in a down or volatile market.