[Flip Discussion] Missing Appraisal

[Andrew Luong]

Hey All -

Interested to chat this topic over a bit.

I've recently flipped a home with the contract price coming in at $269k.  Additionally, this was off of multiple offers from qualified buyers.

With that said, the home ultimately missed appraisal and came in at $245k - overnight I lost $24k!  We then went on to provide additional supporting comps + supporting evidence on repairs and improvements.  Ultimately the appraiser turned this down and stuck by his original valuation.

I ended up accepting this as this was the price that I had budgeted and I was worried of wasted time for a similar appraisal later on but this was still a huge pain regardless.  The market clearly says that the home was worth ~$269k but the appraisal came up short!

Anyone else have similar experiences - especially in this market?  Also, any tips to mitigate this risk moving forward?

Cheers!

Andrew