Comps Low Due to Wholesale Deals
Since the beginning of the year, I have purchased several properties in a neighborhood from a wholesaler, and I personally know of a second investor who has also purchased several in the same neighborhood from wholesalers (between us, we have 8 in the neighborhood of about 50 properties). When the sale gets recorded, the "sale price" is what the wholesaler and the owner agreed upon, and doesn't include the wholesaler's assignor fee (the price I actually pay). The lower "sale price" is what is being reflected on zillow/MLS sites, thus we are bringing down our own comps.
I wouldn't care, except I would like to refi and pull the cash out of them and I'm afraid the properties will not appraise high enough because our comps are artificially low. There have been two "on market" sales that are substantially higher than our properties, so that helps, but I don't think the appraiser will use only 2 out of 10 sales in the neighborhood in the past 6 months.
All I can think of so far is to do a rebuttal on the appraisal and submit my HUD statements, but I don't feel comfortable asking the other investor for their HUDs. Has anyone experienced this, and if so, how do you get an accurate appraisal?
Thanks! :)