Updated almost 6 years ago on . Most recent reply
Appraisal Process for Selling Property
During the process of selling a Fix-n-Flip, the appraisal came in lower than my Listing price. My agent said that the price HAS to be lowered due to the appraisal. The appraisal was lower than expected upon my purchase and lowered based on trying to sell. I didn't know it would dictate my selling price. Is this normal? Can anything be done to keep me from offering the property at a lower price?
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#2 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#2 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Reggie Greene, you can play hard ball and not lower your price. If the buyer can come up with a larger down payment, they can buy it. However, a more likely scenario is to let the buyer know you won't accept a lower price, or not as low as the appraisal and the buyer needs to contest appraisal to get it up.
With flips in particular, I always have an "appraisal package" that I leave for the appraiser, if I can't meet them in person. It includes a full list of updates, permits pulled, comps to support your value (not just sale price, but PSF can help too), and if available, other offers if you were in multiples. Especially, if there are others at the same price.
I would also push back on your agent, especially if he/she directed you on list price. Make them work for their commission, because it sounds like your agent just wants this deal to close with as little work on their part as possible.