Appraisal for MLS Property

[Garreton Smith]

Hello BP Fam, 

I've been putting in offers all week for flip deals. One seller wants me to get an appraisal done (out of my pocket) to go with my offer. The house is extremely distressed and needs a lot of work done. I called an appraiser and he said he won't be able to pull comps on a distressed property the most he can do in his report is assume an ARV and minus it from what he thinks construction will be. Should I take this gamble? What are your thoughts?

[Dan Nutter]

Hey @Garreton Smith, this is definitely interesting. It looks like you've been in contact with the seller and may have a gauge on their true desire to sell, which can help you determine whether the $600 for an appraisal is money wasted or a worthwhile risk.

My supposition is the appraisal will come in higher than your offer, which will likely embolden the seller to stick to the appraised value or higher. However, if you think you can make some good money off of this property, and you don't see the seller budging without an appraisal, then it might be money well spent. 
I think it's a good sign the seller didn't outright tell you to go take a hike at your offer amount, so there's probably some negotiating that can be done.