Does seller contribution of 5-6k reduce the appraisal value of comps?

My home came in 9000 below my realtor original
estimate of market value based on comps and
the appraisers are saying that is the reason
why.

Asked on January 26, 2019 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

There is no law governing this: that is, the law does not say what does or does not go into an appraisal, or comps, or determining home value. It is up to the lender or the realtor (whomever is doing the appraisal or setting the value) to determine what factors they consider in determining fair comps, or the value of those comps, or the value of the property being appraised. That being said, since seller contributions decrease what the buyer is actually paying, it is logical and fair to reduce value by those contributions. Mathematically and financially, a $190,000 sale price where the seller contributes (or so effectively returns to the buyer) $6,000 is the same as an $184,000 price with no contributions.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.