NO there is no industry policy. And we've had them come in above contract!

You know what the deal is? The appraiser's job is to confirm or deny that the purchase price reflects the market value of the property and some of them take that quite literally. LOL

Just be glad it came in at value and not below! That happens too!

That's common, the appraiser is validating that the value, based on comparables is inline with the offer, that's all that's needed! Like Ron and Alexandra Seigel said, go celebrate!

They come in at contract price, below contract price and above contract price.  This is an opinion of market value, on that particular day by that particular appraiser.  It's not an exact science.

That is the norm in the Charlotte area. My take is that if they can prove the value to the price on the Contract, they do. Otherwise, if they can't prove the Contract price, the appraisal comes in low and that opens up a whole new negotiation process!

Why ask?  Celebrate!

Industry standard in Florida:

The reason that it comes in at the purchase price is because the appraiser has a copy of the contract and wants to bring it in as close as possible, because...

• If it comes in too low, appraiser will get backlash calling him an idiot.

• If it comes in too high the lender (suspects dirty dealings) and will require a "review appraisal" and may even require a whole new appraisal.

Which is why even if the value is there, an appraiser does not value the property with a high appraisal...it will just be more red tape.

Eve

I would be thankful you received value and not question why it was not higher

It is the norm here in our area to come back at the purchase price but that being said there are a couple of appraisers here we can count on costing the seller $5,000. to $20,000 on a typical sale if we don't do their job for them by providing good comparable to them.

Richard Weeks gave you the answer you need....

I have seen appraisals over asking price, and under asking price and at asking price.  It is what the appraiser determines the value to be as of that point in time.

Appraisal is an opinion of value and can come at any price. It should not be a concern if it comes at contract price or above.  It will be a concern when it's below the contract price because someone needs to make up for the difference. 

Appraisers see the contract and therefore have a target they need to hit. I've had them come in both high and low. High only makes a buyer feel good, but doesn't change anything regarding the loan. Low means renegotiation time with someone or everyone.  

Since the change a few years ago, most appraisers are afraid to come in high, but I've still seen it a couple times. 

      Most houses with available comps come in at contract price.   See the answers from Pete Xavier and Mike & Eve Alexander for why.

Nothing succeeds like success. I'd save the energy to address the real problems that can arise!

Mr/Ms. Blue Profile, Be happy! 

You must be brand new. Check with your broker, this is an easy one.

Yes, sometimes appraisals come in above contract price...
As long as it comes in at contract price, all is well!

There is no industry policy, but the purpose of an appraisal is to assure the lender that the contract price has value to protect the lender. And I've had plenty of appraisals come in above the contract price.

Had one just last week that came in above contract price.

Yes they come in above the contract price but they don't have to. Appraiser just being lazy I bet. Have had a few over the last year that did. Buyer always thinks its great.

Actually appraisers want to know if a property is under contract and for how much. I refused one time and the guy argued & begged. His appraisal came in contract price if memory serves

That's great news! Most if mine have come in at value but have had a handful below, and some that were above. As Richard Weeks says it's not an exact science.

So many factors to consider. Congrats...this looks like another transaction closer to a successful closing.

I've had them come in over before.  Most appraisers, in my experience, don't like to bring them in too much over contract or list.

I've had some recently come in above contract price. There's no policy; if done correctly, appraisals should come in above, below and at contract price.

I just had one come in $45,000 over contract price. It's like passing the state real estate exam--they don't tell you your score--just that you passed. If I come in at market so be it. If it's under I don't freak out. Adjust and move on. 

Many great responses.

If the appraiser knows the contract price, that is a good market indicator.

It is not odd at all for an appraisal to come in at the contract amount. Lenders want to know that the value of their collateral is adequate to cover the loan amount. The lender usually commits to a certain loan amount as a per-centage of the total value of the property. Say…80%...with the buyer putting up a 20% down payment. The catch is that the loan will be 80% of the contract amount or the appraisal amount, not more. If the appraisal is more – yes, I have seen it happen – the loan will be 80% of the contract amount. Not 80% of the appraisal. The buyer will still need to put up 20% of the purchase price. If the appraisal is less than the contract amount, there can be a problem. Now the lender will not make a loan equal to 80% of the contract price.

Yes there is.

But I can not trust you are trained, experienced or informed sufficiently to use such information responsibly.

But that what comes with being Anonymous.

I've seen some appraisals come in above contract price, but rarely at significantly over contract price.

It is very common. An appraisal is not always looking for the exact value in today's market, but if the home being bought is priced at market value. If below there is trouble. If too far above, the bank will want to know why under priced. Therefore most come in near or at sell price

Once in a while appraisals are lower than contract price. Afterall they have to run the business, too... lol!

Yes they come in above. Be Happy it's not low.

Who wants to stick their neck out further than they need to?

Isn't the very definition of market value what a buyer will pay and a seller will accept?  That's the sales price. I wouldn't complain that an appraisal only came to sales price.  

Yes, and do you have to ask such a question anonymously?

I have had appraisals come above contract price.

Rarely the appraiser want the lenders to know you stole a home. Most will agree with your ractified purchase contract value. 

I do not find it odd that an appraisal is at contract price? It is pretty standard and to be celebrated.  It beats coming in low. 

I have seen appraisals come in higher than the contract price.  Not many in numbers, but I have seen it. 

Right on, above and below

They get a copy of the contract, and know the amount they are trying to get to.  We don't see much over this either.

That is most often the case: the easy way out.

Sometimes

It happens but very few times.

Lucky you! At least was not lower. :)

We had recently higher appraisal +13K.