Appraisal higher than purchase price

[Laramie Hiebner]

So I'm buying my first triplex. We negotiated down to $105,000. And we are a few days out from closing and it got appraised at $117,000. What does that exactly mean because the bank told us that means instant equity. Does this mean I could turn around and sell it for $117,000? What are some thoughts?

[JD Martin]

No thoughts. The number is meaningless right now. It means you're not getting screwed in the deal. A $12k spread between purchase and appraisal is no big deal. If you closed and turned around and sold it for $117 tomorrow, you'd break even.