Apraisal for REO

[Bobby Gupta]

I put a offer for a SFM and got it. I am in process of closing in few weeks. I personally think i got a hell of a deal.

Foreclosed asking price= $524000

county apraisal= 627000

accepted offer= 459000

my insurance company did homework and they are wanting to insurace $744000 that will be the value if they rebuild the house.

My Realtor wants apraisal value to come at asking $459000 but hes not sure why. he said thats whay he was told but noone told him why 

Goal is to live inthe house for 5-6 years and then flip it

Do i want apraisal value to be high or near sale price?? what are the reasons behind it?

[Wayne Brooks]

Appraisers are reluctant to appraise properties much above the purchase price, just a form of CYA.  It really doesn't matter for you, as long as it's $459k.  As for insurance, that's not a Value, it's a cost to replace/rebuild.