What does it mean if the home appraises more than the purchase price? (real estate, heloc)

[Kreutz]

I'm putting 33-34% down on a 207k home with the seller paying $3,500 in closing costs, and the home appraised for 210k, or 3k more than the sale price, what exactly does that mean? Thank you.

[TimtheGuy]

It means your purchase price of $207k is probably well supported. Other than that, nothing. shouldn't change anything in your deal.

[manderly6]

Is this a trick question?

[ETex2]

It means that you're buying the home for $3000 less than what the appraiser believes it should have sold for based upon his analysis of market data in comparison to the home. Simple, right?

What did you think it meant?

[Kreutz]

Originally Posted by ETex2

It means that you're buying the home for $3000 less than what the appraiser believes it should have sold for based upon his analysis of market data in comparison to the home. Simple, right?

What did you think it meant?

No idea, I work in healthcare, not real estate or finance. Ive just been writing the checks lol.

[MikeyKid]

It means you just kicked down your neighbors value a smidge and set a new lower comparable for the next buyer in the area... way to go!

A few years ago it would have meant HELOC spending spree.

[VictorBurek]

Originally Posted by MikeyKid

It means you just kicked down your neighbors value a smidge and set a new lower comparable for the next buyer in the area... way to go!

A few years ago it would have meant HELOC spending spree.

Haha

A home is only worth what someone is willing to pay for it. Your home is worth what you paid not what the appraiser felt it was worth.

[sigep739]

Originally Posted by VictorBurek

Haha

A home is only worth what someone is willing to pay for it. Your home is worth what you paid not what the appraiser felt it was worth.

AMEN! I wish more people understood this.

[MikeyKid]

Originally Posted by VictorBurek

Haha

A home is only worth what someone is willing to pay for it. Your home is worth what you paid not what the appraiser felt it was worth.

Tell that to the bank - you of all people know how important an appraisal is to financing... What I think is really funny about it is the whole appraisal game. If homes were listed at their "appraised value", would the game be much different?

[t_woww]

the house i'm buying appraised for $10,000 more than what I am paying.. will this help later on if I want to refinance in the future? This is my first home, so i'm a little curious just like the poster.