Spam prevention
Rainmaker
4,798,978
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The appraisal would still need to come in at $245,000.  That is the problem with closing cost assistance.

Aug 10, 2015 04:46 AM
Rainmaker
603,371
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

The appraisal is based on the purchase price, pure and simple  The buyer is getting a loan and the lender needs to know that their investment is worth the amount that is being loaned.

Aug 10, 2015 06:57 AM
Rainer
214,523
Sharon Altier, SFR
Lawton Realty Group, Inc. - Elmhurst, IL
Your Real Estate Partner

Contrat price of $245,000.

Aug 10, 2015 06:51 AM
Rainmaker
3,614,063
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Appraisal has to be for the purchase price, which is $245,000.

Aug 10, 2015 07:47 AM
Ambassador
3,985,894
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

$245,000. Although the value of seller concessions can play a part in the appraiser's subjective viewpoint of value.

Aug 10, 2015 05:03 AM
Rainmaker
717,388
Sara Wagner
The Woodland Companies - Adams, WI
Stevens Point Rentals

I think that the higher number is the one to go with, I prefer to see the price dropped rather than the closing credit.

Oct 31, 2018 08:09 AM
Ambassador
4,897,258
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

A good question for the lender involved.

Apr 22, 2018 10:06 PM
Rainmaker
699,027
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

You said it yourself, the home sells for $245,000.

Aug 11, 2015 10:56 AM
Rainmaker
323,415
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Patty, as you are aware, the purchase offer was probably made contingent upon appraisal supporting the agreed purchase price; BUT what IF IT DOES NOT APPRAISE, ARE YOU GOING TO LET IT DIE?

As Buyer's agent, it is easy to assume such; and especially if buyer NEEDS seller to cover closing costs.  Generally, seller will reason that no closing costs to be paid.  But, let's think about that.  Let's assume value comes back two percent less than preferred value.  Does Seller still want to sell?  Does buyer still want to buy?  Okay, let's negotiate.  As buyers' agent, I reason that seller is going to receive 98% of projected offer, so my buyers will offer appraised value, and ask seller to pay 98% of the original agreement's closing cost figure. amount.  Question is, WHO does not want to see this transaction conclude at the closing table?  As buyers' agent, I will gladly accept 98% of my prior anticipated fee.  What about you, dear listing agent friend?  Talk to seller   Yes, may get another offer, but my buyers WILL find another property 

Aug 11, 2015 01:39 AM
Rainmaker
345,571
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Appraisal needs to be at contract price.  Appraisers will often ask if there are seller concessions (typically they have a copy of the purchase contract).  I often get calls from appraisers working on an appraisal for a property and looking to talk to agents with pending or closes sales in the area.  They will ask if there were seller concessions on my listing.

Aug 10, 2015 11:44 PM
Rainmaker
504,518
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

The appraisal has to be $245K. The loan is based on a saleprice of $245.

Aug 10, 2015 10:32 PM
Rainmaker
2,360,331
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Patty. The appraisal must come in at $245,000. The seller concession needs to also be mentioned in the appraisal.

Aug 10, 2015 07:15 PM
Rainer
66,214
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

The apprasial has to be the sells price and not less the closing cost.

Aug 10, 2015 09:38 AM
Rainmaker
385,902
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

As many others have said, the property would have to appraise for 245k if that number includes the 6k in closing costs. 

Aug 10, 2015 08:02 AM
Rainer
284,694
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

If the appraisal comes in lower, the buyer will need to make up the difference. The appraiser will know about the credit and it is used in the opinion. The lower amount is used for mortgage loans

Aug 10, 2015 06:00 AM
Rainmaker
803,708
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Should appraise for sale price, but with 20% down , and/or the $6000.00, I think apprasier feels like there is a little less risk to lender and might feel more comfortable leaning towards a little higher value here and there in his report.

Aug 10, 2015 05:29 AM
Ambassador
453,976
Bob Haywood
McGraw Realtors - Owasso, OK
BobHaywood.com

Yep 245K

Aug 10, 2015 05:21 AM
Rainer
112,897
Vera Gonzalez
RE/MAX Suburban, Inc. - Sterling Heights, MI
Gonzo For Real Estate

245k. 

Aug 10, 2015 04:53 AM
Rainmaker
292,385
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

The appraisal should be the fair market value of the home . 

Aug 10, 2015 04:48 AM