My Home Appraised For More Than I Paid. Over time, the appraised value of the property could far exceed the. You can ask the seller to accept the appraised value of the home.
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If the home had appraised for $250,000, the lender would have been able to give you $237,500 as a loan. Given that home prices in many areas may still slide downward, why would you willingly lose money on day one? You decide on a premium that covers up to $80,000.
This problem generally leads to the seller dropping their price or the buyer backing out of the deal.
At the time of purchase the value is based on the lesser of the appraised value or purchase price. Last year’s property values increased about 6 percent. You’re losing money right out of the gate. Let’s say your home replacement cost is $100,000.
