Need an answer quickly as the market here in Denver is insane and I need to move quickly on an offer. Purchasing a property outright with funds from my SDIRA. Is it necessary to obtain an initial appraisal for the property I'm going to purchase? The quicker I can make the deal go through the more likely my offer will be accepted since there are multiple offers so if I don't need it, I'll bypass it since appraisers are currently scheduling 3-3.5 weeks out due to the market here.
I've searched the forums but am only coming up with the yearly appraisal that needs to be done on the IRA, not this specific question.
Thanks in advance!
No appraisal is required to buy the property using the funds from the IRA. Without knowing your experience I would encourage you to find the information an appraisal might tell you like zoning. If it is a straight forward deal and you are comfortable with the numbers it is just like buying with cash. I know the market is wild but one thing you could do is not have an appraisal condition but conduct one to know the value if you are not comfortable camping it on your own. Also an appraisal is not required annually, just a value of the asset that could be supported with comps in your file.
Appreciate the response @Travis Sperr I thought so, but wasn't 100% sure. It's my 1st purchase of this sort but have done plenty of research into the area and comps so I'm satisfied with the numbers. However I AM still having an inspection done and the deal is contingent on that.
Appraisal would be required if you financing the property. If you are paying cash (IRA or personal savings) there is no one to require an appraisal in order to purchase, as long as you know the market and know that you are not overpaying - there is no appraisal will be needed.
@Shawn York Do you have MLS access? If not, I can run some comps to help with your comfort level.
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