In all of my years in real estate I have only had two occasions where an appraisal came in short. One incident happened 5 years ago and one happened a week ago. In both situations the buyers had asked for closing costs to be included in the purchase price and the buyers offered more than the asking price to receive the credit at the closing. Most interesting to me was that both loans were VA loans and the only VA loans I have been a party to in all my years in the business. In one case the seller and buyer came together to make up the difference. In the other situation the seller wouldn't budge and the buyer agreed to come up with the difference. Both deals closed, but I have come to wonder with the 2 for 2 record, if the VA is more conservative on behalf of the veteran than other institutions might be.
On a separate note, in our area, it is common practice for an appraiser to have a copy of the accepted offer. It has been done this way for several years now. Personally, I believe this is a disservice to the parties involved and our industry as a whole. The appraiser should be able to determine a value on a property without knowing the price that the buyer and seller have agreed on, and whether closing costs are included in the purchase price and being credited back to the buyer.
Thanks for writing. Sales data for closed transactions is public record. If your agent is working for you as a buyers agent, she could provide these to you at your request. You can always get the info at the appropriate government office; in our area, the register of deeds or county clerk would be able to help you. I hope everything turns out just as you'd like it! Best wishes.
It all depends. I am seeing appraisers and banks being very conservative in their evaluations, but, if there are comparable recent sales (last 1-3 months) that indicate a higher value you have the possibility that it could appraise over sale price.
I just had a home appraise higher than the sales price and the Buyer was very pleased.
Good Luck to you.