re: How accurate is a home appraisal for the mortgage company?

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The house across the street from me sold in 2018 for $295k

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Appraiser uses comps from the last 6-12 months. It’s also VERY arbitrary. We just closed on a flip that went through three contracts. 1805 sf, 3BR/2.5BA in a highly sought after area.

First contract was for $187, appraisal at $180, contract fell through- financing

2nd contract was for $180, appraisal at $155. We appealed the appraisal using the first appraisal as evidence, but got nothing, so we walked away.

3rd contract was for $187, appraisal came in at $187.

All within 90 days of each other.

Per our realtor, the biggest difference is who is financing the loan. VA loans typically come in way under (2nd loan). We would have closed the 1st deal had the loan not fallen through, but it all worked out for us in the end. I wouldn’t worry about comps and having ‘built in equity’ for a positive appraisal. Anything you need to take a loan out for is going to need a new appraisal, and you just hope your $495 is well spent.