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FirstTimeHomeCryer

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Should I pay for an appraisal?
I know my significant other and I could get approved for the house, they are asking $80k, based solely on credit and income. I am pretty confident in that. My worries: The house we want to buy was last assessed at $66,000. The current owners didn't have to go through a bank to purchase their home so they bought it for $85,000. They have put $20-22k into the home, which I believe after walking the property and seeing tons of updates (windows, septic, central air system, cosmetic, and new underground trenching to their water disposal) . I really really really don't want to spend $400 on an appraisal if we don't think its going to appraise high enough for the bank to loan money. Do you think its worth it to get one? Current Appraisal: $66000 Their Bottom: $80000 Actual Loan amount: $75000 My bank needs it to be appraised within 97.5% of asking. Currently it's within 88% and would need to appraise around $73,000

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Getting an appraisal may not be your option to consider.   Your bank will want one to ensure they are not loaning you more money than the house is actually worth.  They will want to be certain that for any reason of a default, they can get their money back.   While you may feel that it is a nice house and the improvements have made it more valuable, do you really want to pay them more than the house is actually worth.  That's a lot like walking into Walmart and giving them $10 for a $1 loaf of bread.  In fact, when you make your offer on the house, make your offer based on the appraised value and have them pay for the appraisal.   You can ask for anything in an offer.

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