I am in the process of buying a home. The home was originally listed
for 345k. It has been on the market for 6 months. We negotiated and
got the offer down to about 295k. All well so far, until we got the
home inspection done.

The home inspection further revealed problems with septic etc and we
brought up those issues. The final nail was the bank appraisal, which
came up to be the exact price as the mortgage that is 295k. Further,
the appraisal says that the house is in need of no renovation or
repair due to the recent changes. How ever the house is in not so good
shape and the reason they had agreed to let go of about 50k was
because of the repairs it needed.

Talking to the bank person, her point was the appraiser just tries to
get the mortgage loan approved. And he assumes or overlooks the parts
which are in need of repair as other wise the appraisal would be lower
than the mortgage and hence, we wont be able to get a bank loan

This make me think if the house was over priced in the first case. I
understand the bankers reasoning, but it means that in some ways I am
paying for the house to be completely fixed which is about 30k worth
of expenditure.

How much weight age should be put on the bank appraisal. It almost
seems like they made the appraiser actually bump up the appraisal. Any
thoughts?

Thanks a lot
Manny