Appraisal from a hard money lender

3 Replies

By the line - "their own appraiser", I would think one of two things is happening. 

1. They (local) are walking the property and estimating the value based on what they see, in a market where they are comfortable lending.

2. They are contacting a non-affiliated third party appraisal (that they may have done business with in the past) to appraise the property officially.

Both scenarios are generally true for your question. Some lenders don't require an official appraisal and that would be scenario #1, but they are still looking at the property and determining the value after the repairs. If scenario #2 and the appraisal is a disappointment, then you may have to put up more money in the deal and really believe the value that you estimated carefully.

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