All Forum Posts by: Terry B.

Ken Lou what type of property are you looking for?

Thanks Shawn Holsapple I appreciate the response. If this was in my neck of the woods (Indy or any surrounding county), it would be a different story... Just don't want something that will sit on the market for 180 days. I just wish a couple recent comps existed... But there has been no activity in that neighborhood!

Anyone familiar with the real estate market in Columbus, Indiana? I have the opportunity to purchase a 2500 sq ft bi-level with 1 car attached garage for just under $60k. The house is on the north side of Columbus and it needs approx $25k in rehab. Estimated sales prices range from $105k-$125k from various realtors (all realtors who have price opinion are out of market except one local guy) Comps in the neighborhood are too old to use (only one house has sold since 2010).

@Luiz Souza My thoughts exactly. The whole situation just rubbed me the wrong way.

@Luiz Souza I ended up making $19k on the deal, even with the low appraisal. We negotiated with the buyers and ended up not paying any closing costs for buyers, and didn't pay for the buyer requested home warranty. The buyers and their agent knew what a great deal they were getting on the property and didn't bat an eye when we proposed those changes. They couldn't sign fast enough!!!

@Erick V. Thanks for the info. I will remember that if/when I run into this situation again!

@Mike Webb it is extremely frustrating when that one person, with his "x" years of experience over rides 4 people (my agent, buyers agent, me, and 1st appraiser) with a combined 70+ years experience... and there is NO RECOURSE!! That FHA appraisal would have followed the property for 6 months, basically forcing my hand to sell for below market value OR hold the property for 6 months.

@Erick V. I don't use price per square as my only tool to determine resale price and/or AVR. I mentioned this to back up my stance that the second appraisal is incorrect and extremely low... The properties that were used as comps were similar, but were NOT rehabbed, per my original post.

I was unsuccessful in getting the appraisal changed, as the 2nd appraiser wouldn't call me back/return email. I still made $$$ on the flip, but it's just annoying that one guy's opinion was put above everyone else in the transaction, and screwed me out of $5k!!!

Joe Gore both appraisals were ordered by the lender.

The lender ordered both appraisals. As I stated, I have a copy of the 2nd appraisal but I am hoping to get a copy of the 1st appraisal, as I have requested it from the lender.

Situation is below... anyone had success getting an appraisal amended or changed?

Most of my projects are purchased, rehabbed and sold within 90 days, so the need for a 2nd appraisal is not a surprise to me... however, the outcome of this second appraisal has taken me aback...

The home is under contract for $118,200 with me paying $2,000 in closing costs for the buyer. Loan is FHA. The first appraisal came back at, or over, sale price (I haven't obtained this appraisal yet). Second appraisal came in at $113,000 (I have the full appraisal)!!

The 2nd appraisal uses very accurate comps based on square footage, style (ranch) and condition of mechanicals and exterior finishes. Roof, HVAC, etc all appear to be original on all comp houses (including mine). Interiors vary from pretty worn (stained carpet, dated/mismatched appliances, etc...) to good condition (newer finishes, but not NEW). My rehab was not a total gut, but pretty much everything you see (except drywall, mechanicals, tubs and windows) is new. The average sales price of the 5 sold comps on the appraisal is $98/square foot. My home is 1216 square feet, which would put the value at $119,000.

I don't feel I am getting ANY credit for the rehab and work I've done to the property in the 2nd appraisal. I'm trying to get a copy of the 1st appraisal to compare, but am hoping someone on the site has had this experience and has had luck getting an appraisal amended or changed!!