What’s it Worth?

Apparently, almost exactly what I’m paying for it. As part of the mortgage process, my bank had a real estate appraiser survey the property for real estate value. They do this to make sure the house is worth, at minimum, the amount I’m borrowing to purchase it. If the house appraises for more, thats great for me the buyer (instant equity). If the house appraises for less, the bank won’t let me borrow any more than the appraisal amount. And in many cases, you take the appraisal back to the seller and say, “about your price…”

My appraisal came in just $1000 higher than the purchase amount, so I’m in good shape. As part of the appraisal, which my bank gave me a full copy, it shows the recent home sales in this and similar neighborhoods which show where she based her number. She compared my house with 4 others which have sold in the last few months, all similar in square footage, number of rooms, and condition. The house she ranked as the most comparable was the house across the street. Although it has a basement, she deducted a certain amount from its selling price and volla, my house appraisal.

Now I am waiting on the bank to do a clear title search and schedule a closing date. We are less than 1 month away, or so they tell me.

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