Appraisal and Purchase price

For this fremont property, the appraiser gave the purchase price as the value.

Funny thing is he ignored the comps next door and choose the comps still within 0.5 miles which are in a much worse school district. He conveniently ignored the comps which are way higher.

Choosing comps from same school should be a basic requirement. No?

If appraisal comes way above purchase does that make him look bad? Is there any truth in this? Any experiences?

We didnt challenge the appraisal because we can get the loan.

Choosing comps from the same school district can be a consideration but not a requirement. I question why you would want it to appraise for more. So the seller gets word of it and and tries to back out of the deal?

Seller knows it already. The home needs work, thats why they sold it, they didnt even clean the home for showings. Neighbor told me open house was a joke.

I wanted to get an idea of the home after the remodel, if I were to refinance or cash out.

ALL RE is school driven, so thats interesting

In my personal experience of having gone thru multiple appraisals on same property (purchase and then refi), appraisal process in itself is a joke, esp in Bay Area. It is an artifact of the real estate transaction process that may still be valid in the rest of the country, but in a highly competitive and informed market like the Bay Area, it is simply a process inefficiency.

Appraisers simply start with a value (esp for purchase txn) and then do the math to make that work. I used to question the appraisal process earlier, but now simply treat it as an unnecessary hoop that you must jump thru.

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Since I don’t have children in school, I did not worry much about the school district when I bought in Evergreen in 2011. When I move to San Diego next year I will not care about the school district either, only the neighborhood. There are also plenty of people like me around, so for you to say that All real estate is school driven is a bunch of, how would buyinghouse say it, “poo-poo de toro”.

I will give you another example. The silver creek high school district draws students from the Tully and King area, one of the worst areas in San Jose. It also draws students From silver creek valley, and area with Multi Million dollar homes. Yet they are in the same district. If you built a home near Silver Creek Valley type home near Tully and King, would it sell for the same price?

Haha ok. Well ALL is not, alright.

we are getting sidetracked, the main question here is properties belonging to different schools, where comps are in adjacent street, why go 5 streets over.

Your example might be a different scenario.

I think Intangible hit the bell there. I had similar situation buying fixer-upper where I am about 75K below market comparables. But Appraisals magically come up with $5000 above transaction price. I haven’t done through the refinance part yet, maybe they will come up with right comparables at that time to support your claim.

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