Interesting thoughts - in an ideal world that would be a great approach. I do think that if the lender wants to calculate risk on the loan, the value should be based on the true value, not what one person is willing to pay... so in that scenario the appraiser shouldn't know the purchase price (but they should be 100% familiar with the type of home they are appraising). However, due to how quickly log homes sell in the area we wanted to expedite the offer and contract as quickly as possible. I know the value is there, if you take what it would cost to build the home new ... talking with a few log home builders the estimate is that the home would cost $375-$400k turn key, minus land/driveway/pool. But I know that really doesn't mean anything for the appraisal and take into account actual market value. That said, if the house doesn't appraise for some reason it still is a financial hit to us by a few thousand (fees, appraisals, inspections, etc.) - so we aren't getting away unscathed if that happens.
All we can do I guess at this point is wait and see. This week will be nerve wracking for us!
It depends how 'close' - within 1 mile and 12 months, no. One did sell 2 months ago which is less right at 4 miles away. It is bigger by about 400 sq feet and has 2 additional acres but sold for $70,000 more ... so if that can be used as a comp then I would think we should be fine. Assuming they had a mortgage on that home they would have had to go through the same process as we are so that makes me feel better.
Many other log homes have sold within a year but most of them are 15-20 miles away, most of which would be favorable to us and support the value of this home. If that radius is too far then I assume more conventional homes/craftsman style homes will have to be used for the other two with adjustments.
