Influencing the Appraisal Price

[Isaac Hayes]

On my first deal in Columbus, Ohio, the appraisal came back at the exact purchase price. My understanding is that the lenders usually want the appraisal to come back at exactly the purchase price so buyers aren't allowed to roll other closing costs into the loan. As the buyer, a higher appraisal is attractive to me as it would allow me to roll closing costs into the loan to decrease my cash outlay so I can buy more properties. I'm less worried about the risk with a high LTV since I know the financials on properties I buy are solid after underwriting.

Are there methods to use to legally influence the appraisal to what the property is worth vs. the purchase price of the property?

[Bruce Woodruff]

Absolutely. Show up when the appraiser is at the property before they start.....bring along favorable local comps, and your list of upgrades that make this property special, like newly remodeled kitchen Etc....