When it comes to asis properties, are appraiser out of their mind

[Mike Schorah]

When it comes to "as-is" properties, are appraisers out of their mind???

Do appraisers just appraise by taking the ARV and subtracting repairs (and not the other costs like Real Estate Commission, Title Insurance, Escrow Fees, Transfer Tax, Termite Clearance, Roof Certification, etc)??? Why is this appraisal so high???????

Wish I could take a screenshot to show you guys. But to sum it up without pictures.......

I went to an in-person appointment today near where I live and offered $140k ($280k is where I put it with the comps times the 70% rule minus the $65k rehab that I'm projecting). The owner said that it appraised for $218k. Sure enough, he sent me the appraisal and it appraised for $218k which makes absolutely no sense to me.

The comps are putting it at roughly $280k. Here are the comps from the appraisal:

https://www.zillow.com/homedet...

https://www.zillow.com/homedetails/29-Northfield-Rd-Newark-DE-19713/72898096_zpid/?

https://www.zillow.com/homedetails/710-Manfield-Rd-Newark-DE-19713/72898217_zpid/?

The comps that I have are:

https://www.zillow.com/homedet...

https://www.zillow.com/homedet...

I would put the ARV at $280k after including the fact that there is a tool shed (might need to be torn down) and a sunroom. It has the attached garage like the property at 706 Manfield Rd has.

Do appraisers just appraise by taking the ARV and subtracting repairs (and not the other costs like Real Estate Commission, Title Insurance, Escrow Fees, Transfer Tax, Termite Clearance, Roof Certification, etc)??? Why is this appraisal so high???????

[Steve Vaughan]

Quote from @Mike Schorah:

Do appraisers just appraise by taking the ARV and subtracting repairs? I offered $140k ($280k is where I put it with the comps times the 70% rule minus the $65k rehab that I'm projecting). The owner said that it appraised for $218k. ??? Why is this appraisal so high???????

 This appraisal sounds about right actually. 

$280k minus repairs of $65k sounds shockingly like $215k.

Appraisers don't bake in antiquated wholesaler MAO formulas.

And stop offering with so many zeroes. Make your offer look like it came from your calculator.   Be specific.