Appraisal Question

[Robert Renne]

Today my lender sent me an email asking for the purchase agreement on a new duplex. He said that the appraiser has asked for this document in order to complete the appraisal. Is this standard practice? I see no reason for the appraiser to need this information. They should make the appraisal on the property alone not influenced by what the agreement says. Any input would be greatly appreciated. Thank you.

[Mike Cumbie]

Hi @Robert Renne,

It is pretty standard. It helps them to establish what a seller and buyer will pay in the market. As long as the comps look good and it isn't way off I find they are pretty in line. (Assuming your agent ran the comps and gave you good advice on the property)

In my opinion (and only my opinion) most appraisers don't want to kill a deal. On the same token if you are overpaying by a significant amount then they have to cover the banks investment. Seeing your offer is an extra piece of information that helps them to make a sound appraisal (buyer and seller who are at arms length). I normally see offer $120,000" appraisal "120,100". He may have thought originally "it's worth 119,500" but then sees 120,000 and can give you the benefit because you were arms length.

Good luck on whatever you decide to do!