Memphis -Low appraisal value - Please advise

[Amit C.]

I offered 85K on a property in Memphis but appraisal came back as 72,000. I do have appraisal contigency so i can come out as well.

But In this case, would you recommended to counter Seller  $72,000 or move out. expected rent is between 800-900 ? Teneant is already placed till march for $900.

Thanks for all the help.

[Stephen Akindona]

Yeah I would suggest walking away, but I know from first hand experience that the Memphis appraisal climate is a bit iffy right now. We are seeing appraisals come in much lower than times past because some appraisers now are eliminating comps that traditionally would have been accepted. Appraisers are now eliminating investor sales. When you see a comp from an investor who sold to another investor, usually out of state owner, that comp is no longer usable!