Appraised Value vs. Market Value (Virginia Beach)

[Alexandria Arnold]

Hello! 

I have a question on appraised value vs market value. 

There is a duplex listed for 299k in Va Beach but the appraised value stated 230k. I am not sure why there is 70k in gap. This would be a private sale - no agents. Any advice on how to negotiate this difference to the seller? Seller holds lots of property in family LP - this being one of them. Recently renovated roof but inside needs a good bit of updating. Numbers work at 275k but I don't want to pay more than the home is worth. This would be my first investment property - house hack. Thinking of going for the FHA loan route or maybe home equity line. Thank you!!

[Russell Brazil]

FSBOs typically have a harder time appraising than properties listed by agents. The reason for this is pretty simple....typically when an appraiser goes to a FSBO, the seller just lets the appraiser do their thing and leave. When an appraiser goes to an agent listed property, an agent is providing them comps, justifying the sale price, educating the appraiser on the property, the neighborhood, the market.