For a Conventional Loan, can you go by the Cost Approach on the appraisal for the value instead of the sales approach?

Although guidelines do allow for cost approach vs. sales approach, typically the cost approach is only used when valuing newer homes where there has not be sufficient comparable sold properties to determine an accurate valuation.. The sales approach is always the most accurate since it's a direct reflection of what the market is doing right now.. and it will factor in depreciation... But on a new build, since it's brand new.. there is no depreciation.. so the cost approach is more accurate. Regardless, it's up to the appraiser as to which approach he will use.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347