New home appraisal lower due to change in market?

[LeslieR]

I'm curious if anyone else has experienced anything like this. The house we are buying was appraised last week for only $5k more than what we are buying it for. I was very surprised as I thought we were getting a bargain. Meaning, I thought the house was worth a lot more than what we are paying. I was under the impression that despite prices lowering, the value of a house would never go down. Am I wrong?

[Cali_Katy]

I've definitely heard of appraisal values lowering. They have to value it based on current prices, so if the comps in the area have been selling for less than they used to, the value would be lower.

[BTB]

It seems you think "value" means something different than "price"? They're the same - the "value" of a house IS it's price. A home is only worth what someone is willing to pay for it. Values/prices can and do drop all the time, that's why neighborhoods fight tooth and nail to keep cell towers away, for example, or to prevent the building of the new town dump next to them.

[LeslieR]

Okay, that makes sense based on the report I saw with similar houses for sale listed as comparisons. Very interesting. Thanks for the reply!