Understanding Appraisal Value

[Andy Bhuchar]

Hi All - just got my appraisal back and the appraised value is the exact same amount as the purchase price. The purchase price was negotiated down by about $40K prior to going into contract.

Question - does it seem strange that the appraiser's value exactly matches? My cynical side has me wonder if the true comp value may be lower but the appraiser working with the lender doesn't want it to fall through.

TIA! 

[Henry Clark]

@Andy Bhuchar

Normal

We bought 8 acres for $200,000.  Appraised at $220,000.  He said he was pushing it to do that.  Told him it should appraise for $100,000 per acre.  Said he couldn’t do that

2 years later after we cleaned the land up and put a commercial building on the property the same appraiser did $120,000 per acre.  

Do improvements.  Get renters. Etc.  Then go for appraisal.