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So the appraisal came back and it's 35K lower than our purchase price.
We're waiting for the bank/owner (Fannie Mae) to respond.
Our lender also gave the appraiser additional comps for the appraiser to use. So the appraiser is going to reevaluate his report on his end as well.
We're supposed to close on the 26th. It's so close yet so far away.
Our best case scenario would be the bank to just reduce the price to the appraisal price and we save 35K, but I don't think that'll happen lol. Wishful thinking.
What have your experiences been when this issue arose?
On the other hand, is it a good or bad thing if the appraisal comes back higher?... our appraisal came back about 10K higher than we expected, so our insurance rates went up proportionately. Not a huge deal, but I was wondering what exactly that meant.
On the other hand, is it a good or bad thing if the appraisal comes back higher?... our appraisal came back about 10K higher than we expected, so our insurance rates went up proportionately. Not a huge deal, but I was wondering what exactly that meant.
Neither good or bad. The point of the appraisal is to insure that the purchase price is in line with the loan requirements. Only bad if appraisal is lower than sale price and seller won't come down. Not sure why it would affect your insurance rates, you didn't pay any more for the home. Around here, the insurance company doesn't even see the appraisal.
Neither good or bad. The point of the appraisal is to insure that the purchase price is in line with the loan requirements. Only bad if appraisal is lower than sale price and seller won't come down. Not sure why it would affect your insurance rates, you didn't pay any more for the home. Around here, the insurance company doesn't even see the appraisal.
Ah, hmm. I think it affects the cost of total replacement on the home?... if it appraises for higher, then it will cost more to rebuild it if it burns down. It's an old Craftsman, so maybe that has something to do with it?
Replacement cost is generally not part of the appraisal for most normal real estate, and the way insurance companies determine the premium for all but the most unique residential properties does not require an appraisal.
I believe that the difference between what you thought your insurance was going to be and the value of your appraisal was coincidence. Many insurance companies have been forced to raise rates to adjust for the costs of coverage, this is unrelated to the value of the underlying real estate in 'appraisal' terms, but is related to the fact that the insurance companies have had more losses and claims...
I believe that the difference between what you thought your insurance was going to be and the value of your appraisal was coincidence. Many insurance companies have been forced to raise rates to adjust for the costs of coverage, this is unrelated to the value of the underlying real estate in 'appraisal' terms, but is related to the fact that the insurance companies have had more losses and claims...
I don't know... quite literally, our insurance agent called us and said that the appraised value of the house had gone up from $215K to $224K, so he would raise our quoted rate to reflect that. That's all I know... maybe he was using the wrong numbers to begin with, and just corrected them after the appraisal? It's not a big deal, but it's good to know that it won't affect the sale in any way.
I don't know... quite literally, our insurance agent called us and said that the appraised value of the house had gone up from $215K to $224K, so he would raise our quoted rate to reflect that. ...
I'd find another insurance company. Are they going to lower your rates as the market value declines?
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