Should I Walk?

[David Neely]

Hello BP community,

Wanted to pose a question of those who are seasoned vets at this stuff...

I've got a contract on a 4 unit building that is set to close Sept. 15. Purchase price is 287,900, which was "best offer" that seller would come down to, as that was the price that the seller purchased it at and obviously they . Well....the appraisal came in at 265k today. Pretty significant difference. I've got the appraisal clause in the contract, so we're restarting negotiations based on the new information. The property has a NOI of 28,800 annually, so it was a pretty decent investment even at 287.9. Not spectacular, mind you, but pretty decent.

That being said, if the seller refuses to come down, would you walk, based on significant overpayment from appraised value? Or would you continue based upon the fact that the numbers still look good even at current contact price?

Thanks for the guidance

Dave