3 Units appraisal came back 50K below
I made an offer on an offer on a multifamily 3units.
The appraisal came back around 50 K below the negotiated price and 70K below the original asking price.
The house needs some repairs around 15-20K. I am not sure but I think the house is worth around 360K. The rental income would be 3700-4000/month.
The seller has ordered and paying for a 2nd appraisal and we are waiting for that to in.
How would you handle this situation? What does this mean?
Please enlighten me with your expertise.
Thank you!
Most Popular Reply
@Najat F Kessler where is the property located? If bank financing is involved you have 2 options. 1 is to demand that the seller bring their price down to the appraised value (which I would recommend). 2 would be to bring cash to cover the difference between the appraised value and the sale price (seems like that could be close to 50k extra).
My advice would be to stick to mindset of "make money when you buy, not when you sell". Therefore, you should always try to buy property below the appraised value, rather than above.