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> Same reason you don't buy a house by comparing its list price to similar local sales, or trending house prices Except you should do that otherwise you could
by throweway 11y ago
> Same reason you don't buy a house by comparing its list price to similar local sales, or trending house prices
Except you should do that otherwise you could overpay and in some cases be refused finance as a result!
- seanp2k2 11y agoAlso, they absolutely appraise house prices by those metrics, along with square footage. A house selling for less in a neighborhood will also cause the appraisal value of other similar houses to drop. People get upset about that even if they have no intent to sell their home.
- devonkim 11y agoThe appraisal value is absolutely important when using lenders. My house appraised for 25% less between two local appraisers within 5 months of each other - the higher was during low housing movement. This forced me to bring in even more money and nearly caused the seller to drop and wait for a cash buyer (common in high retiree areas). That appraisal value is not terribly important to retirees though because they tend to buy for keeps instead of caring about resale value as much as, say, a first time home buyer would.