I was trying to buy a property from a wholesaler to fix and flip. When I did my research it shows the house WILL NOT PASS ANY APPRAISAL. How can one tell whether the house will need to be demolished and rebuild? The math seem to work fine. This is my first deal if I agree the take it. Should I pass on this deal or should I consider moving forward with it. Thanks for all your input
Not sure what you mean by not passing an appraisal. An appraisal is an assessment of the value of a property. It not a pass/fail type thing - the appraisal will result in some value. It might turn out to be a really low value but the idea is that the appraiser would provide an estimate of what similar properties have been bought for recently.
Maybe the issue is that the appraisal will not match the asking price. Then I would say that the seller is asking way too much. Actually an appraisal would be a good tool to support a lower price during your negotiation.
@Dele Ola Hi Dele. I agree with Steve B. about an appraisal being an assessment of value. Every property has some value, even if the value is only in the land. Determining value through the appraisal process is an opinion based on numerous determine factors. Depending on your goals, the professional appraisal can help you make a decision about what you would like to do with the property. Whether you decide to negotiate price or walk away, the apprIsal is not a pass or fail document.
It is excellent that you mentioned this subject in your post. Many investors may benefit from your question. Investors look for opportunities to solve real estate problems. Perhaps a seller may not not fully understand what an appraisal means to them. You can use information in an appraisal to help solve a problem no matter what the report says.
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