Quick appraisal question. We're purchasing a home that seems to be fairly undervalued but the seller needed out.
Appraisal came back 30k above sales price so no issue there but I was curious about adjustments made for land/lot size. The house is quite large and the appraiser obviously prioritized comparing to similarly sized houses. However, all the comparables were only on half an acre vs our 5 acres. I expected a sizable adjustment for that but it was only like $30k. Later on in his cost approach analysis, he mentions safely assuming land at $46k an acre for similarly sized land sales.
Just wanted to see if this seems odd to anyone else. I'm mostly interested because we've considered re-appraising soon after closing to get rid of pmi. Some of the comparables certainly support that idea but then some don't, and the land is the main factor I can see.
Appraisal came back 30k above sales price so no issue there but I was curious about adjustments made for land/lot size. The house is quite large and the appraiser obviously prioritized comparing to similarly sized houses. However, all the comparables were only on half an acre vs our 5 acres. I expected a sizable adjustment for that but it was only like $30k. Later on in his cost approach analysis, he mentions safely assuming land at $46k an acre for similarly sized land sales.
Just wanted to see if this seems odd to anyone else. I'm mostly interested because we've considered re-appraising soon after closing to get rid of pmi. Some of the comparables certainly support that idea but then some don't, and the land is the main factor I can see.