Appraisers blowing up deals

[Mo Karim]

Something to keep in mind and I've seen this happen numerous times starting late last year, both from personal investment side and agent side: appraisers are being very tough on their appraisals. They're not giving an inch and erring on the side of caution even with good comps. Hoping for 5-10K over your contract price so you can use the excess as credit towards closing costs? Probably not going to happen. Appraisal came in 5-10K below contract price and you want that seller side reduction? That's also probably not going to happen. I've seen appraisers blow up multiple 7-8 figure deals from other experienced commercial brokers. Something to pay attention to as you buy and sell in this environment. 

[Jay Hinrichs]

Quote from @Mo Karim:

Quote from @Jay Hinrichs:

Quote from @Mo Karim:

Quote from @Jay Hinrichs:

this happened to me in the Dallas market and after about 10 flips there we finally moved to other markets.. part of it was our price point.. they were all fha buyers.. so once U got that apprasial it was stuck for 6 months .. buyers did not have money to cover..  

@Jay Hinrichs - Yep, seen FHA and VA appraisals come in under comps and contract price multiple times this year. But it also happened to me when I sold my Oklahoma 7plex recently. Thankfully buyer and I were able to reach a compromise as they had cash to cover.

What markets are you in now? 

Oregon  new builds.. the rest of what i do is as a capital partner.. My money there work.. Currently operating in ..  KC  Toledo Cleveland Indy W pa  Baltimore  Augusta

@Jay Hinrichs awesome! I have a few rentals in KC burbs.

my teams are really doing well in the KC market ..  they sell about 70% of the deals they do and keep the rest.. I have 3 teams there.