DO I OR DONT I? Duplex appraisal came in low but the numbers work

7 Replies

Hey everyone,

I am in a bit of a pickle as to whether or not to go through with a duplex in Clarksville, TN. A quick background on the prop; 1600 sq ft duplex in a nice area getting me 8% ROI after all expenses. I would have to put some money into it, but the main issue is that it appraised for 15k lower than what we were under contract at.

Of course I don't want to over pay for anything. But it's already been renovated in many areas and the numbers work. I was fairly conservative with the math and it still would get me 8% at current rents.

I was hoping to see what all your thoughts were as to if this is still a good idea or not? 

Thanks!

Clark Henderson

@LaRussa Henderson it’s hard to say unless you note what you are paying. Appraisals are all over the place right now. I would go back to the seller and ask them if they have any room. A lot of things are selling at the top of the market currently, but it doesn’t mean that this is the actual top just means the current market. I like to look at what new construction costs and compare the two a little bit and then also the simple fact that your number still work even with a lower appraisal would probably be a good sign to move forward. The Clarkesville market has hardly anything for sale to even begin with much Less multi family.

I know for a Single family the appraisers would use similar comparables. But for a duplex, what they use to compare? I just got my sfh appraises by va and it came in at $147 and I listed at $138 thinking that might be high. Its in Clarksville tn 37042.

Originally posted by @Sang Yi :

I know for a Single family the appraisers would use similar comparables. But for a duplex, what they use to compare? I just got my sfh appraises by va and it came in at $147 and I listed at $138 thinking that might be high. Its in Clarksville tn 37042.

Yep they used similar comps in the area as well