Landed calculates the Beginning Property Value (what we base future appreciation/depreciation sharing on) as the lesser of the sales price minus seller credits, or the appraised value (generally using your lender's appraisal).
The beginning property value does not include:
- Sales commissions
- Closing costs
- Loan fees
- Prepaid taxes
- Or any other expenses
If you are considering purchasing a new construction and adding upgrades, please let the Landed team know so we can provide additional details.
What if the offer price exceeds the max estimated value of the property?
When an offer price exceeds the maximum estimated property value from our internal valuation system, Landed will require a second appraisal (i.e., third party valuation in addition to the appraisal ordered by the mortgage lender).
We use the second appraisal to help reaffirm your offer price, and avoid instances where you’re overpaying or the first appraisal did not include appropriate comparable properties.
In these cases, a second appraisal is required for property approval by Landed, and the report is prepared at the homebuyer's expense.
If you have questions about this process, send us an email at firstname.lastname@example.org.