In most cases the appraisal for a new home is there to keep the bank happy, and the appraiser will know the projected loan. If they can't find true comparables, you may not get as accurate an estimate because there is nothing to compare to, but the appraiser will usually ensure it appraises for more than loan value.

Didn't they do a preliminary estimate of the final value to ensure you (and the house) could qualify for the final loan?

Bruce

I dont think they have honestly..I'll inquire about that

@User recent comps are 330k up to 430k and those are homes within 1 mile of

@Couture Vert the builder carried the construction loan. We just had to put 10k earnest money down. And a few are 1-200 sq ft smaller than mine but appraised at 330k. Just by looking at the exterior of the remaining homes they look at least 3000 sq

Terrence, check the local real estate assessor’s records of the houses are complete. There should be information on square footage in his records.

I think the comparable appraisal based off the similar properties sold within 6 months. We just found that out while we are going through a buying process .

Retired appraiser here. You new home will be compared to new or almost new homes. The appraiser will find the most substantially similar comparable properties that have sold in one year or less located in the general area. They will then adjust for differences using valuation metrics that will reflect differences in the market valuation.

Chances are the larger homes immediately around you that you referenced are a few years old at this point and won't be used. If one of them sold recently, it may be noted in the report but not for a comparable property. If the appraiser determines that it's similar enough, they may use it to support your valuation. It all depends on local market conditions and the availability of substantially similar comparable properties.

Every market is different. Every home is different. Every appraisal report is different.