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Updated about 7 years ago on . Most recent reply

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Dillan Ruthenberg
  • Sudbury, ON
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Is there a bottleneck in appraisals for brrr/helix

Dillan Ruthenberg
  • Sudbury, ON
Posted
Hi Everyone, I have my 2nd property closed and set to take possession Jan 18th.   It is a Triplex purchased for 222,500 (good price for my area). The building is stucco and could use a bit of updating to increase rents but overall is in nice shape and entirely rent-ready. It has: - 3 units (2 2 bdrms, and 1 bdrm) all with their own entrance - The 2 bdrms both have their own laundry facilities - Baseboard heat  - Ample parking (6 spots) Based on comparable sales there are 2 sales within the last 6 months within about 1-5km from this location that have sold for the following: Duplex with an illegal 3rd unit, all 3 units are 2 bdrms, gas furnace heat - Sold for 340,000  Duplex - 2 bdrms, - Sold for 290,000k Both of these buildings look nicer than mine on the exterior but mine does not look awful by any means.  Technically I should be able to order an appraisal on my property on the 18th of January  when I take posession and showing some comparables and say because mine is a legal triplex it should be valued higher than the illegal triplex that sold for 340,000. And I should be able to pull out equity instantly. 
If there are recent comps that sold near it for higher, is there any downfall on ordering and appraisal instantly? I am assuming they are somewhat subjective in the appraisal but if they base it on comps my logic should be right. I wonder if there is any downside to ordering a couple appraisals and pleading my case My one thought is they may be biased because it was just purchase for low 220s. (e.g if it was worth 350k they would have sold it for 350k but because it sold for 222 it is worth 222.) I think this is very important to figure out because it is the different of buying a property every year or being able to buy a property every month. 

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,066
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17,425
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Your sales price will essentially be the appraised value. If it were worth more in its current condition, then it would have sold for more.  You will have to wait til your own property ages outside of the conparable sale window to end up with a substanially different appraised value, because until then your property is the comparable sale most in likeness to your property.

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