Updated almost 6 years ago on . Most recent reply
Short Sale - Getting an appraisal
Hello BiggerPockets.
I am a newbie hoping I have my first deal completed soon. I have a question about short sales.
The home I have under contract is a single family 3bed 1bath. Will be adding an additional bathroom on the main level. The seller wanted 99k and I offered 80k and my offer was accepted. I'm looking at a potential ARV of 160k- 170k, maybe a little higher with the additional bathroom. My contractor gave me a rehab estimate of 35k. I am using a hard money lender to purchase and rehab this deal. My plan is to refi into a normal mortgage and then keep it as a rental.
So the property is got to be a short sale. And we arestill waiting approval from the bank. My hard money lender wants me to go ahead and get an appraisal done. Is this normal? The bank hasn’t approved my offer yet. I would be spending a few hundred bucks for the appraisal. And if my offer isn’t accepted, I would be get an appraisal for no reason right? Again this is my first deal so I just want to be clear on this short sale process.
Thank you!!
Most Popular Reply
Since it is a short sale, I'd wait until you get some idea if the offer is accepted or not.
Finding the right guy in the bank to OK it can take forever (especially if its a big lender like Chase or WF).
Even if you get an appraisal today, it may take 6 months and the appraisal may not be worth anything or inaccurate.