What are the benefits of a home appraising for more?

What are the benefits of a home appraising for more?

Property Manager · Louisville, KY · Member since 2017 · 49 posts · 24 votes

Hello BP,

Other than "scoring a good deal" or having "instant equity" in my pocket, what are the benefits of a property appraising for more than it was listed? 

I am in a scenario similar to the one explained above, so I was curious if there was anything I can do with this "instant equity" other than just knowing I made a smart purchase under market value?

Let me know.

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  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 213 posts · 160 votes
    9y

    If you want to get aggressive with your capital and it appraised significantly higher, you can refi and pull that equity out to pursue another deal.

  • Property Manager · Louisville, KY · Member since 2017 · 49 posts · 24 votes
    9y
    Originally posted by @Charles Kennedy:

    If you want to get aggressive with your capital and it appraised significantly higher, you can refi and pull that equity out to pursue another deal.

    I am sure the LTV had to match a certain % in order to refi, correct?

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 213 posts · 160 votes
    9y

    I just talked to a mortgage broker who said I could refi and get a 3% down loan. So I don't think so.

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