We have a contract on a lot. Appraisal will be done in next week or so. We do believe that the appraisal will come in under our contracted price. We of course will negotiate with sellers but just trying to prep ourselves for how much extra cash we might need to make up the difference. For lot appraisals do they only consider recent sales? The area is an established neighborhood and it is all re-sales at this point. Probably 10-15 lots sold in the last year. The problem is they have sold as much as 50K below our contract price and as much as 30K over our contracted. There is tons of variation (Hill country) in the quality of the lots as well. The ones that sold for much less are significantly steeper and less builder friendly. Ours has a good level build site and is already cleared. The contract price is lower than the other 6 lots listed right now. Does the appraiser take current listing prices into consideration? Do they consider the level build site and the fact it is already cleared?

AgPT06 said:

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The contract price is lower than the other 6 lots listed right now. Does the appraiser take current listing prices into consideration? Do they consider the level build site and the fact it is already cleared?

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The appraiser should take current list prices into consideration; however, should not give primary weight to them as they are not closed transactions. The appraiser should definitely take into account the level build site and the fact it is already cleared.

I can tell you that appraising hill country lots is really difficult. Trying to figure out the adjustment for "view" is not easy.

Thanks all. Hoping they get it finished by Christmas. Will report back how it goes.