Listing Price versus Appraisal Price

[Leonard Sanford Jr]

Good Evening All,

I am a new Real Estate Investor who is very interested in getting my feet wet by purchasing a Quadplex. The property is currently fully occupied with tenants, and the numbers I have ran look to be favorable. However, the seller has noted that the property has appraised for $93K but they are listing the property for sale at $165K. What is the discrepancy in these two numbers? Also, I would like to know how these numbers would impact funding from lenders to actually acquire this property? Any and all help is greatly appreciated BP family! Thank you in advance!

[Russell Brazil]

When you apply for a loan, the lender will order an appraisal. The appraiser will receive a copy of your contract. They will then look at the data in the market to see if the contract price is justified or not.  A previous appraisal has no relation to what a new appraisal, with a contract in hand, will come back at.