Rental Property Investor · Ephrata, PA · Member since 2018 · 37 posts · 17 votes
We are looking at an off market deal a block over from a property we just purchased. We know what our house appraised for but the thing that makes us nervous is the house next door to the new property sold for quite low and that would be a pretty decent comp (it sold in Dec 18). We would be looking to buy the property cash and do a cash out refi immediately so we would not have to put any of our cash into the deal. Has anyone put in an offer contingent upon an appraisal and done the appraisal before purchasing? Thank you in advance!
@Nicole Dechow Getting an appraisal before purchasing would be smart to do especially if you are not sure of the value of the home. At the very least it will give you piece of mind going forward.
Are you planning on doing an inspection of the property? If so, get the appraisal done during the inspection timeframe and take it from there.
@Fred Shatzoff the reason we would do this is to get all of our cash out so we would not be spending any money in the end. Our house right down the block appraised for 89k and this house we would buy for around 70k. Do you see another way to do it and get our cash out?
@Michael Noto thank you! I wasn’t sure if people ever got an appraisal as a contingency just to protect themselves.
@Victor S. it looks like the home next door was sold to a family member from another family member for just $2k extra so that is why the price was so low. It was never listed. Would an appraiser be able to tell that kind of thing? Or would this still hurt our appraisal it only sold for $66k and we would want our house to appraise for $100k based on other comps.
@Victor S. it looks like the home next door was sold to a family member from another family member for just $2k extra so that is why the price was so low. It was never listed. Would an appraiser be able to tell that kind of thing? Or would this still hurt our appraisal it only sold for $66k and we would want our house to appraise for $100k based on other comps.
if it was never listed, i assume there were no pictures available to show its condition. not sure if this would be a true valid comp in this case ( i could be wrong). if other comps are solid, then make sure to present those to the appraiser as well.