Did you interview the appraiser beforehand? Ask for his experience and qualifications? You can ask LSI to review. If you are not satisfied with a detailed explanation justifying the amount refuse to pay. If you paid already you can file against the appraisal firm in small claims that you did not get what you paid for. If the appraiser is not up to snuff he shouldn’t be appraising. How far you want to go depends on how well he can convince you he is right.
To flip the note or not to flip the note…appraisal came in low - Posted by Tom_Nagle_PA
Posted by Tom_Nagle_PA on August 25, 1999 at 22:09:06:
Hello everyone.
I posted a week ago about four townhomes that I was picking up for 44K a piece - actually I was going to buy two outright and lease-purchase the other two.
I ran comps and thought that an appraisal would come in at 62-65K. Only one unit was vacant, and my thoughts were to create and flip a note on that one to raise some cash.
The townhomes are in good shape. Maximun into each one is $1500, which is for carpet and paint. I am supposed to go to closing on them in about 3 weeks. I have developed a good relationship with the owner, and probably could extend that if need be.
Anyway, I had one the one vacant unit appraised (they are all the same and do not have HOA feed) just the other day and the appraisal came at 58,900.
I started running an “OWNER WILL FINANCE” ad today which is going to run for the next week, and I hope to generate a lot of prospects.
Am I naive to think that I can sell this property in a short period of time. The area is good and the layout of the property (3/1.5/gar) is popular for 1st time homebuyers here). Because of the low appraisal, my ITV went from 68 cents on the dollar to 75 cents on the dollar - a number that I wouldn’t ordinarily buy at in a true fix and sell retail scenario.
Would anyone be so kind to offer their insights into my situation. As always, thanks for the response.
Re: To flip the note or not to flip the note…appraisal came in low - Posted by Tom_Nagle-PA
Posted by Tom_Nagle-PA on August 26, 1999 at 08:26:42:
Jeff,
I did let the appraiser know what I thought the property would come in at. I had to use a national appraisal firm - LSI - for the note buyer (broker) I was going to use. They are the only approved appraiser (they contract with vatious local appraisers) in my area. I heard from a mortgage broker that they come in 10% -15% under the market.