FSBO Appraisal as a Buyer

[Aaron Hanson]

Hi BP family, 

We have a fixer-upper deal in Austin that we are looking at that is FSBO and off-market. We have a handshake on a purchase price. It'll be a primary residence and we'll be using a conventional loan. The seller also offered owner-financing, but we're wanting to lock in rates while we can.

The condition of the house could be liveable after a deep (biohazard) clean.  The previous tenant was a hoarder, but most updating is cosmetic and the exterior is in great shape. 

My concern is that the house may not appraise for our offer price and my question is if it's atypical for the buyer to engage in the process of "cleaning" and preparing the house in preparation for a lender's appraisal.

[Patrick Britton]

As an appraiser, please believe me when I tell you that if an appraiser thinks you're overpaying for a house, you most certainly are and should probably not do it.  If I showed up and a property to conduct an appraisal and the buyer was there cleaning I would make sure to look extra, extra closely at all of the possible deficiencies, because that reeks like the buyer is trying to pull one over…