Appraisal is exactly $100k over the agreed purchase price. Could this be a bad thing?
TL;DR -- Does this sound like it's incorrect? Could the sellers back out and try to sell it for higher?
House was listed at $299k for almost a month with absolutely no offers yet when husband and I offered $289k. Sellers met us in the middle at $295k.
It's a ~2100sqft 3b2bath bi-level house that's less than 10 years old. Attached garage. It's in a nice neighborhood with no HOA, but it's in a shit school district, which we thought might be the reason it hadn't gotten any offers.
It's pretty much as good as new, so we feel like we are getting a steel, but the appraisal being $100k over feels wrong. The report provides 4 nearby houses that all sold for within $10k of our agreed sale amount, but all of them are a couple hundred square feet smaller, so maybe that's the big difference? Idk.
Everything I see online indicates that our PMI could go down or go away entirely (we are able to put down between 3-5%) and just makes it seem like "Congrats, here's free money!" I feel a little wary, I guess. This whole process has just felt a little too...easy? Maybe I'm just a highly anxious person, but could this be a bad thing somehow? I have even wondered if this could be a typo, but it says $395k repeatedly, so I don't think so.
UPDATE: Talked to our lender, who looked through the appraisal document, and he is of the opinion that it really is a typo.
FINAL UPDATE: The appraiser confirmed it was, in fact, a typo. It was supposed to be $295k. 🤷♀️ No free equity for me, lol, but at least it wasn't supposed to be lower than the sale price. Full steam ahead to closing!