Investor 路 Cincinnati, OH 路 Member since 2016 路 34 posts 路 53 votes
Strange problem I've never encountered before in my 12 years of investing that I wanted to get some opinions on. I got a quad under contract, based on the rentals I thought I got a decent but not a killer deal in a good location. So the appraisal comes back about 30k under the contract price. My first time the appraisal came back lower than contract price. Kind of caught me off guard . Anyone else encounter this before and what do you do, ask seller to drop price to appraised value ? Can't get a mortgage for anything over the appraised value....guess didn't have as good a deal as I thought 馃....but numbers still work for my purposes!
Thoughts ?
Thanks
There is no way I would appeal the appraisal, use it to your advantage. Now, as far as the appraisal if it meets your numbers and this is a cash flow long term deal I wouldn't have a problem with the low appraisal, if this is a short-term flip deal then that's a different story. Appraisals are so subjective and are not always accurate, you have to look at the comps they pulled and whether they included a gross rents multiplier since this is an investment property. There could be many factors creating such a discrepancy. Put the ball in the sellers court, providing the reason why, it's up to him to appeal the appraisal. If this seller is motivated its a win-win for you.