loanmasterone
If the sale price exceed the appraised value of the property being sold yes, the value of the house would be what the appraiser wold value the house.
This could happen in the appraisal of any property, not just a FHA appraisal.
There are might be cases where an appraised value of a house would be less than the agreed upon price. This is not a normal occurrence. If everyone have done their job with the comps of the property the appraised value would not be significantly different frm the sale price agreed upon by the seller and buyer.
The amount you would be allowed to borrower to purchase the house would be based on the appraised value of the house.
If the appraised value of the house is less than the agreed upon sale price of the property, there are certain things that must happen
#1.The seller would have to reduce the sale price to match the appraised value of the property
#2. The seller would be required to increase the down payment. This would not be smart as the seller would now have a property that is below the appraised value therefore immediately have negative appreciation in the house.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
curtisports2
No, not most of the time. My experience when I was selling, and the majority of my sales were to first-time buyers going FHA, was that I never had an appraisal come in lower. I had several where the appraiser required the seller to take care of some small repair issues, but never an issue on value. That doesn't mean there aren't some low appraisals, but it is NOT the norm.
?
It varies. In some markets at some times they do but generally they come in around the sales price if everything was done honestly.
Judy
Not most of the time. This will limit the amount you can borrow. The seller might be willing to drop the price to the appraisal amount. If not you'll either have to back out or come up with the difference in cash.
P
FHA Appraisals are not necessarily lower than any other type of appraisal. The appraiser would have to justify a lower appraisal value especially since it could make the deal fall through. Appraisals are only an issue when a buyer may have overbid a property compared to the comps and is putting little to no money down. FHA buyers typically don't put much money down so if you get a low appraisal the buyer typically won't be able to pay the difference. Regardless, appraisers know what the current market is and will typically not try to kill a fair deal.