Turnkey Investing - Paying over appraisal price

[James V.]

Would you ever pay over appraisal price for a turnkey investment property? 

This is apparently not uncommon in the turnkey investing space.  I wont name the company I'm working with, because I do respect them, and believe they they're one of the premier operators in this niche, but my appraisal came in lower than contract price.

I understood turnkey pricing essentially equated to 'retail' pricing, if you will, and can justify retail pricing based on risk model and the passive approach, but the questions remains:

Would there be a case for OVER market pricing?  Appraisal lower than contract price.

[Alex Craig]

I would not pay over appraised value, ever.  As a TK seller, I just sold one to a BP user where our sales price was $99,500.  Appraisal came in at $97,000.  I ate the $2,500.  I could not see why my investor would be interested in paying over the appraised value.  My bank when I bought it appraised it for $100,000, so I thought the $99,500k appraisal was a slam dunk, especially since I added granite counter tops in the kitchen and bathrooms.  Rent was $1,095 at 8% mgmt as a FYI.