Purchasing Home and Appraisal came under expected value

[Paul McLaughlin]

Hello,

 I'm new to BP my name is Paul.  I'm in the process of purchasing a home that was on the market for $164,900.  I offered $140,000 and they accepted the offer.  I just received the appraisal back from the bank and it was appraised at $145,000.  This is concerning to me because I was planning to put money into it thinking I had $25,000 of head room.  Does anyone have any thoughts?  I'm I missing something?

Thank You,

[Russell Brazil]

99.99% of the time, the appraisal will come in at either the exact sales price or slightly above. They simply do not vary that much that range.  The appraiser has a copy of the contract, then looks at the market to see if the sales price is a justifiable amount for the lender to lend against. If you paid $150k for it, then the appraised amount would have likely been $150-$155k.