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Appraisal value vs comp value

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Geovonni Osbourne
from mount vernon, NY

posted 10 months ago
What’s going on BP family I’m inching closer to pulling my first deal . My budget will basically force me to tackle long distance properties. Which I have no problem with. I’ve learned the invaluable skill of networking over the past few months so it will be that much more of a stream line process. My question is I’m going to do a flip and or BRRR depending on if I can sell or not. Can the house be appraised for much higher than the comps that are being sold due to the market? And in that case would holding be a better option?

Brian Pulaski
Flipper/Rehabber from Montgomery, NY

replied 10 months ago

I don't think a house will appraise much higher than comparables. Usually that's why they are used as comparables. Holding a property in hopes it will appreciate is risky, but people do it all the time.

Joe Villeneuve
from Plymouth, Michigan

replied 10 months ago

Since one of the biggest things the appraiser looks at is the comps to set their price, I thinking the answer is "NO".  That doesn't mean you couldn't sell it for higher than the appraisal.  In that case, the buyer would have to bring more cash to the table to make up the difference.

I've run into this a number of times.  If the buyer agrees, the deal can happen.

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