The home is brand new, appraised for $370K two years ago, cost to build plus land $345K. 3 months ago assessed at $313K and l am purchasing for $265K. the appraiser came out and said, yah, its worth $270K. why dont they give you a true market appraisal instead of just copying the purchase agreement and be done with it. its robbery because l paid $425 bucks to have someone read the purchase agreement and stamp the purchase price on a loan...comps are different development, different builder..do l have a chance to even challenge it?

Why challenge it? The only reason it is appraised is to make assure the bank that it is worth what it is lending on it. And (do not quote me on this), yes, it is a racket. You're paying $425 to help get the mortgage.

Besides, the appraiser could argue, correctly, that the house really is only worth what a willing buyer is willing to pay for the property. It does not matter what it might have been worth two years ago, or three months ago. If the best offer today is $265,000, then it is only worth $265,000. And that is the truth.

And looking at the numbers u provided: Cost of land & construction mean almost nothing. Sure, one element of an appraisal is the reconstruction cost. But that is much less important than the comps & what someone is willing to pay. And you're darned lucky that a house that appraised for $370,000 two years ago is appraised for $270,000 today. l know plenty of properties that appraised for $550,000 two years ago that r selling for $220,000 today.

As for an assessment of $313,000: Assessments mean nothing. Nada. Zilch. Assessments r totally meaningless. They're a city or county is guess of an approximately value. Nothing more.

Be happy you're getting a bargain (if u r getting a bargain). The only people being hurt by ur appraisal will be ur neighbors in similar houses. Your appraisal will bring down the value of their houses to closer to what you're paying for yours.

Accept the appraisal. Be happy it came in for slightly above what you're paying. Be happy that the purchase price probably, in turn, will lower the assessment, thus lowering ur taxes.

Hope that helps.

only advise is to get another appraisal from a different comapny. Housing market sucks and home values are going down quickly so it may be correct. Also the appraisal is used to evaluate the taxes for the property so be glad your only paying taxes on 270K instead of the full $370

Appraisers are teas leaf readers. Your house has no value, until a buyer is willing and able to give you a price.
A lot of people are finding that out this days.
Realtors, Brokers and Appraisers are pure parasitic entities, similar like members of Congress, Senate and the President.

What would be a possible reason to challenge an appraisal that is adequate for ur purposes?

We r in a buyers market right now & that means that home prices in most markets have dropped from what they were a year ago. Yes, they have even dropped within the last few months.

Appraisers do sometimes value a property above the sale price. l sold a home one year ago that was appraised for 10% above the sale price. Those buyers probably got a good deal on that home. More than likely the real value was more than 10% above the sale price because appraisers do not like to stick their necks out any farther than they have to. Who knows how it would appraise now.

You could say those buyers had ''instant equity'' in the home. None of that means anything, however, unless they sell the house for that appraised price & collect the difference in cash.

It is the same as crying over losing half a million dollars in the last two months in the stock market. It is not real. The people who owned the stocks never had that half million dollars because they did not sell when the reported value was high.

There r many cases where new homes depreciate almost the same way that cars do as soon as u drive them off the lot. (It is normal.) This home must be used if it was appraised two years ago unless it has gotten stale being on the market so long.

And appraisers opinion of value is representative of the market value of the home. The market value could be defined as what a willing, informed buyer is offering a willing, informed seller.

If what u offer as an informed buyer is accepted by an informed seller, then u have determined the market value. As an appraiser, my job would be to to define this value with comparable sales, reproduction cost, & if needed by income production. If the market stated, in these terms, that ur contract price is within the stated definition, then this is simply a affirmation of ur already defined market value.

In regards to seeing the contract, the utilized 1004/URAR form required by Fannie Mae for all single family homes specifically request any contract & listing information related to the subject property. Fannie Mae requires this for all property types.